Agribusiness and Trade: India and NZ - the next innings

India’s Minister of External Affairs Dr Subrahmanyam Jaishankar. Photo / Dean Purcell

Plenty of ink has recently been devoted to the India/New Zealand trade relationship. Autumn saw a veritable wave of comments, and that has been accompanied by a lot of positive activity. A major report by the India New Zealand Business Council (INZBC) in April advocated greater commitment and focus, and this has been a catalyst to explore new ways of approaching the world’s most dynamic and populous market.

A 40-person trade delegation leaving New Zealand for Delhi in late August is one positive outcome. This is being planned and led by five business organisations, with strong support from the New Zealand High Commission in Delhi and NZ Trade & Enterprise in Mumbai. Government plays a vital role in opening doors in India and a true “New Zealand Inc” approach will be essential to boosting bilateral trade and investment.

Although the value of two-way trade, at a little over $2 billion, is currently modest, several recent visits I’ve made to India convince me this is a relationship of great strategic importance for New Zealand. The magnificent Bengal tiger is India’s national animal and its grace, agility, strength and enormous power provide an appropriate metaphor in 2023. No large market can match India for speed and dynamism and a rate of economic growth that will exceed 6 per cent this year, despite a sluggish global economy. Its young, talented and IT-savvy diaspora is potentially a gift to a country like New Zealand with a dire need for skills. India has become an economic partner we cannot afford to overlook.

India contains 28 states and eight union territories and individually most of them are more populous than New Zealand. The capital, Delhi, is over 2000 years old, reflecting India’s ancient, complex and rich history. There is so much for New Zealand exporters and investors to learn before they can fully understand how to best target their efforts.

Dr Subrahmanyam Jaishankar lauded bilateral cricketing ties with New Zealand, saying India will always be indebted to ex-coach John Wright and Stephen Fleming for their contributions to the game’s development in his country. Photo / Dean Purcell

What is exciting about recent business initiatives is the setting of sights on a strategic approach to building trust and deeper understanding of the opportunities, rather than a purely transactional “one-off” approach to making a sale. Sales are always possible in a market like India; establishing a sustainable long-term business is another thing entirely.

The ultimate objective of the five organisations leading the delegation is to return the trade and investment relationship to growth. Australia’s recent “early harvest” Free Trade Agreement (FTA) has piqued envy on this side of the Tasman, even if it excluded key products of interest to us. We have been down the FTA path with India and while we will always remain interested in a comprehensive agreement, there still is much we can achieve in the absence of an FTA.

There is also much that is instructive about the Australian approach. It has successfully identified what Australia can bring to the sectors India has identified as its top priorities. There have been constant ministerial visits over a number of years propelled by an awareness that government, cultural and academic links can all support the trade and investment relationship. This provides us with helpful cues. There are also trans-Tasman links that our business organisations are starting to leverage.

India’s global diaspora is the largest in the world. Although Australia has a significant ethnic Indian population, New Zealand’s is proportionally larger. A full 5 per cent of New Zealanders claim Indian heritage and are doing much to enrich our economic, cultural and sporting fabric.

They also represent a strategic asset, are playing an important part as we look to strengthen bilateral business exchanges and will be well represented on the mission.

Despite the current low level of trade, New Zealand has much to offer. We have world-leading resources, expertise and technology to share in several sectors. We have technology and manufacturing companies prepared to take a long-term strategic approach to the Indian market, which have built successful businesses there. Companies that could expand co-operation with India include those in the agriculture, agritech, education, fintech, forestry, horticulture and renewable energy sectors.

Becoming an efficient food producer, achieving more intensive land use, educating a population where half of the people are under the age of 25, and reaching world leadership in green energy are all strategic priorities for the Indian government. New Zealand companies that clearly explain what they can offer and are willing to adapt their goods and services to match the needs of Indian customers may discover exciting opportunities.

Being prepared to learn all we can, building long-term partnerships and staying the course will all be important.

New Zealand businesses are travelling to India to explore partnerships for the long term.

We’ve been watching each other and playing cricket for decades: now it’s time for exporters and investors to help lead the next growth phase.

Stephen Jacobi is the Executive Director of the New Zealand International Business Forum (NZIBF).

Other organisations supporting the Indian Business Mission include: the NZ Ministry of Foreign Affairs and Trade; the India New Zealand Business Council, ExportNZ and the Auckland Business Chamber.