KEY POINTS:
India and New Zealand have agreed to begin negotiations on a bilateral free trade agreement.
Trade Minister Tim Groser said he expected the negotiations would get under way later this year. He has said previously that they would take years. The same kind of concentrated and sustained New Zealand Inc effort which bore fruit in the FTA with China was required, he said.
"We have the opportunity with this negotiation to redefine our relationship with one of the world's emerging economic superpowers. We have enjoyed strong ties with India for many years through cricket, Sir Edmund Hillary and our Commonwealth connections. But these are not going to be enough as a basis for taking the relationship into the 21st century."
New Zealand's exports to India were worth $550 million.
He said coal was the largest trade but India was also a growing market for a range of New Zealand services and technology. More than 23,000 Indian tourists and 500 students came to New Zealand last year.
Solid Energy chief executive Don Elder, who has just returned from India, said the meetings he had had with his customers and as part of the New Zealand delegation had confirmed his belief that India was less affected by the recession than many economies because its economy was less dependent on international trade.
"It sees this recession, which is affecting it a bit, as only a temporary blip. It is expecting to pull out of this and grow very strongly from late next year. I see no reason why they should not be able to achieve that even if the rest of the world is struggling a bit.
"There are opportunities in every direction in India. My sense is there are way more areas where our economies and our businesses are complementary than where they are competitive."
As well as trade there were opportunities for investment in both directions.
"It's the same pattern as the Chinese. The Indians on a very careful, selective basis are looking to invest in places that will help them to secure the resources to support their growth.
"I was asked ... by very large Indian business if I have opportunities for investment or could introduce them to people who do."
