Trade Minister Tim Groser believes that New Zealand should consider sectors other than agriculture and diary as important aspects of trade with India.
He said speaking at the ANZ India New Zealand Business Forum on India at the Orakei Bay in Auckland on July 27.
ANZ Bank has prepared a detailed study called ‘ANZ India View Point’ that advises businesses in New Zealand on the strategies to be adopted with statistical details on how to conduct commercial, industrial and investment activities with their counterparts in India.
He said the Study illustrated the rapid changes taking place in the global economy and trading environment. It echoes advice for a range of big emerging economies with which New Zealand businesses are increasingly engaging, including those in Brazil, China and Indonesia.
Mr Groser’s address indicated the need for a paradigm shift in thinking, which essentially called for considering trade as the most important aspect of boosting income, and not just insisting on the agriculture and dairy sectors.
Such a shift may move the current negotiations on a Free Trade Agreement between New Zealand and India, which appears to be stalling on issues related to agriculture.
Mr Groser said that New Zealand should look at the larger benefits in the long-term perspective in its trade dealings. He said the country is well-positioned to take advantage of the new ‘Pacific-centric’ global economy.
Opportune time
“For the first time in our history, we are in the right place at the right time. The Asia-Pacific region is predicted to be the most economically dynamic this century and the trade policy architecture for the region is evolving rapidly, including through a web that spans the Pacific. New Zealand is plugged into and active in these processes. The bilateral Free Trade Agreement (FTA) negotiations between New Zealand and India should be seen in this context,” he said.
An experienced diplomat and an ace trade negotiator, Mr Groser is a strong believer of Closer Economic Relations (CER) as a part of FTA and outlined the success registered with a number of countries. These included Australia (with who an FTA also exists), the Association of South East Asian Nations. He cited the FTA pact with China, which has made that country one of our most important trading partners.
Mr Groser said that an FTA between India and New Zealand would provide another entry point for India and Indian businesses into the dynamic Asia-Pacific region.
“It would support India’s ‘Look East’ policy. India already has FTAs with ASEAN, Japan and Korea. A similar pact with New Zealand would provide India a linkage to some significant additional groupings. We are part of a wider set of negotiations, including the Trans Pacific Partnership that spans the Pacific Rim,” he said.
Addressing Issues
The ANZ Study, called, ‘Thinking India? Think Long Term’ contains the ‘ANZ Privately-owned Business Barometer,’ the challenges that New Zealand businesses face in dealing with India, the issues being addressed by the Indian government to improve its infrastructure and facilitate foreign investors and a number of successful case studies.
Avanindra Kumar Pandey, who made his first public appearance at the Forum as the new High Commissioner of India said while India was keen to enforce further economic reforms, the political climate often clouded such efforts.
“However, we are addressing the need to modernise our infrastructure, further simplify procedures and attract foreign investors and direct foreign investment. The Indian economy remains strong and stable. A long-term vision is needed to deal with a huge country such as India,” he said.
ANZ Managing Director (Commercial and Agri) Graham Turley said that the rise of India as an economic power with high economic growth, rising income and the establishment of a strong middle class of more than 500 million people, provides opportunities for New Zealand to benefits of constructive engagement.
“A number of New Zealand businesses have embraced the opportunity. India is now seventh largest export market,” he said.
Anticipated Growth
ANZ India Chief Executive Subhas DeGamia said that while the existing problems and challenges should not be perceived as hindrances but as the right time to establish businesses and trade ties.
“The slower pace of growth experienced in recent times, high rate of inflation and other factors should be viewed against the state of the global economy in general and that of Europe in particular. Problems such as declining demand, slowing capacity addition and weak political leaderships characterise India, these are short-term problems. Businesses should look at the larger picture. The Indian economy is expected to grow by more than 5% this year and will continue to attract foreign investment.
ANZ is well-positioned to offer strategic advice to New Zealand businesses on dealing with companies in India, including existing and emerging opportunities, investment patterns, market intelligence and good cash flow,” he said.
Among the other speakers at the Forum were India New Zealand Business Council Chairman Wenceslaus Anthony, ANZ Managing Director (Institutional) David Green and ANZ Head of India Relations Sunil Kaushal (who conducted the Forum and Question & Answer session).
Victoria University Associate Professor and Head of International Business Dr Val Lindsay outlined key findings of the Study, while WG-ST Limited Director Ashley Allan narrated his company’s success story in India.
Indian Newslink will analyse various aspects of the Study in its next issue. Our picture here, taken at the Forum on July 27, shows (from left) Sunil Kaushal, Wenceslaus Anthony, Subhas DeGamia, A K Pandey, Tim Groser, Graham Turley and David Green.
