Exports to India from New Zealand have doubled in the past twelve months and India has moved up to become New Zealand’s thirteenth largest exports market. Last year it was not even in the top twenty. Nothing justifies the need to move quickly on the proposed free trade agreement (FTA) with India than this development.
The government had made excellent progress with the previous Indian government that was in place before the recent elections. Then trade minister Kamal Nath had been responsive to New Zealand’s proposals to work toward an FTA and had developed a good rapport with New Zealand officials.
The run up to the election naturally and inevitably slowed down the process. While the UPA government has been voted back to power, it has a new trade minister in Anand Sharma. So rapport building with his new office has to begin all over again. But it must be done quickly since no less than 30 countries that have far bigger economies than New Zealand are vying for his attention.
There is no gainsaying the fact that India offers probably the biggest potential for growth than any other country in the world. Enough has been said about the continually growing breadth and depth of its market thanks to near double-digit growth that is pulling millions of people out of the morass of poverty. Every country has recognised this and putting in all efforts to gain a foothold there.
New Zealand has a lot going for it in India in terms of its brand equity and acceptance as an advanced nation that has much to offer in its areas of expertise – agriculture, dairy and technological innovation. What it lacks is a mechanism to raise that profile and bring it to the fore rising above the veritable cacophony of the over two dozen countries trying to grab its attention.
What it also lacks is a credible and efficient organisational mechanism outside government channels to build bridges and launch initiatives for businesses and investors in both countries to come together. This needs vision, creativity and commitment and needs work on several levels other than at the commercial one. None of the organisations that claim to be working on promoting business between the two countries demonstrate this. In fact, they all seem a ragtag bunch without a credible plan – and certainly no profile.
Australia, as usual, has beaten us to it and has begun working on the idea in right earnest.
Last week, inaugurating a new institute to promote better understanding with India especially in the wake of the attacks on Indian students, Deputy Prime Minister Julia Gillard said, “As the world’s largest democracy and key emerging economy, India is redefining its role in international affairs. Its influence in our region and globally is growing. India is among the top 10 trading partners for Australia and economic relationship between the two countries has grown strongly in recent years. The Australian government is committed to building greater understanding between our two peoples.”
In January, it has invited celebrity music director A R Rahman of Slumdog Millionaire fame to perform at a free concert in Sydney. This is bridge building at its best. While New Zealand may lack Australia’s resources to mount such campaigns, it has a considerable fund of goodwill to fall back on, which it can use to great effect spurred by some great Kiwi ingenuity.
Now is the time for businesses interested in expanding into India to get their act together and get serious. Waiting any longer may be far too late.