India and New Zealand are dynamic market economies seeking to develop their international linkages and maximise benefits that flow from international trade.
New Zealand is part of India?s ?look east? policy, which covers the Asean countries extending all the way to the Oceania region. ?We are looking at increased engagement in the Asia-Pacific region,? said a senior official of the ministry of external affairs.
In an effort to further build on their efforts to promote trade and economic liberalisation at regional and multilateral levels and on their longstanding political and economic relationship, New Zealand Prime Minister John Key along with a 28-member trade delegation is visiting India from Monday.
Recently, New Zealand and India have made concerted efforts to conclude a free trade agreement (FTA) between the two countries. New Zealand?s trade ministry considers that an FTA would create increased trading and economic opportunities for the two countries. The talks between the two countries for an FTA have already been initiated and are expected to complete soon. India currently is New Zealand?s 13th-largest export market, and the volume and value of exports has increased in recent years. But a tremendous potential still remains unexplored in many areas.
?New Zealand places high value on our growing bilateral relationship with India. Our political links are growing along with cooperation in areas such as science, defence and education. There has been a 40% increase in trade figures since 2009. That is a huge jump. Our prime minister will say openly and strongly that India is our top trading priority. And the FTA will help increase trade between the two sides,? said New Zealand high commissioner to India Jan Henderson.
?When commerce minister Anand Sharma had visited New Zealand recently, a trade target of $3 billion to be achieved by 2014 was announced. Currently, trade both ways is $ 1.3 billion and what we are trying to do is to triple the numbers,? said the high commissioner.
Through the FTA, India hopes to gain greater market access in areas such as pharmaceuticals, pearls and jewellery, electrical machinery and equipment, and textiles while New Zealand wants to export more dairy products, coal, wine and farm products like apples and kiwis. Also, India hopes to gain wider market access in the services sector, including more opportunities for its professionals, through the FTA. ?As well as a rising economic power, India?s role is growing in internationally. Friendly relations with India is key to New Zealand?s future,? said Henderson.
New Zealand presents a number of innovative business opportunities both in their country and through partnerships in India. In 2011, Forbes ranked New Zealand as the third best country for business, based on criteria such as trade and monetary freedom, property rights, innovation, technology and market performance.
The country offers an extensively deregulated, low-cost and resource-rich environment, ensuring its attractiveness as a place to do business. According to Ficci officials, India is undergoing a dramatic transformation offering significant opportunities for high-growth New Zealand companies. India is now New Zealand’s second- fastest growing export market, while imports from India are also growing. ?New Zealand companies have investment opportunities in India?s expanding communication and physical infrastructure. These could include road, ports, airports, power sector, mining, oil and natural gas. India needs expertise in water management, soil conservation, waste disposal, food processing and agri-business,? said Ficci.
India is seeking cooperation in the fields of pharmaceuticals, engineering goods, textiles, spice trade and film-making. Stressing that the Indian pharmaceutical industry has established itself in world markets for its high quality, government officials in New Delhi said the aim is the availability of generics in a manner that makes healthcare more affordable for vulnerable sections of the world population.
According to Henderson, New Zealand is interested in enhancing the export of agricultural products, including dairy, horticulture, wine and industrial goods, over and above the traditional export of coking coal and wood to India. She added that several key sectors of bilateral economic engagement had been identified by both sides which were related to the agriculture sector, energy/green technologies, tourism, films, pharmaceuticals, education and general business innovation.
The bilateral trade between India and New Zealand is on an upswing, from $358.53 million in 2005-06 to $612.36 million in 2008-09 and $754.38 million in 2009-10.