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NZ Inc India strategy launch photo gallery
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India’s importance to New Zealand is growing. This reflects India’s expanding economy which has emerged strongly from the global recession, its growing geopolitical importance, and its increased openness to the rest of the world.
India is a priority relationship for the New Zealand and our most developed relationship in South Asia. The New Zealand Government has developed the inter-agency NZ Inc India Strategy that envisages India being a core trade, economic and political partner for New Zealand by 2015. We are seeking to expand and deepen relations across a range of areas.
Drawing on a shared history, India and New Zealand have much in common - parliamentary democracy, Commonwealth ties, the English language, similar legal systems, our admiration for the late Sir Edmund Hillary and a fondness for cricket.
New Zealand’s relationship with India is expanding. This is most noticeable in the increasing tempo of two-way high level visits (full list below), the growing bilateral trade relationship, and the start of negotiations in April 2010 for a bilateral free trade agreement. In May 2010 New Zealand opened a Consulate-General in Mumbai, India’s business and financial capital.
India’s strong economic growth has been matched by an expansion in New Zealand’s trade and economic relationship with India. There is potential for growth in both goods and services - agriculture products, tourism, education, and consultancy services. New Zealand’s growing Indian community and India’s outreach to its diaspora have also served to strengthen people-to-people ties.
There are a number of bilateral treaties in force between New Zealand and India, the earliest of which date from 1963, covering a range of areas including air services, double taxation and wool purchasing. In addition, there are bilateral arrangements on agriculture, plant quarantine, information technology, education, and science and technology.
New Zealand has growing defence links with India. Both countries are members of the ASEAN Regional Forum (ARF) and the ASEAN Defence Ministers’ Plus Meeting. A delegation from the Indian National Defence College visited New Zealand in May 2011. The former Chief of the New Zealand Defence Force (CDF), Lieutenant General Mateparae, visited India in November 2009 (the first such visit) to explore ways to expand the defence relationship. A New Zealand Defence Force Command and Staff College delegation also visited at the same time.
Chief of the Indian Navy, Admiral Nirmal Verma, visited New Zealand in November 2010. Naval ship visits occur quite frequently: HMNZS Te Mana visited Mumbai in August 2008; HMNZS Te Mana and Endeavour visited Port Blair in the Andaman Islands in May 2007; HMNZS Te Mana visited Kochi and Mumbai ports in June 2006; and the Indian ship Tabar visited Auckland in 2006.
Multilateral engagement between New Zealand and India occurs in the United Nations, Commonwealth, the World Trade Organisation and other forums. India's "Look East" policy, and participation in regional institutions such as the East Asia Summit (EAS) and ASEAN Regional Forum (ARF), have led to increasing interaction between New Zealand and India. India’s interest extends to the Pacific Island states and in 2003 it became a dialogue partner of the Pacific Islands Forum.
Our common membership of regional and multilateral forums has provided a high level platform for regular bilateral dialogue on key issues, including climate change and the Global Research Alliance on Agricultural Greenhouse Gases, international trade, United Nations reform, human rights, counter-terrorism and other transnational issues.
New Zealand and India began talks on a bilateral free trade agreement (FTA, or Closer Economic Cooperation Agreement - CECA) in April 2010.
The fourth round of negotiations took place in New Delhi in March 2011. This followed three earlier negotiation rounds, after the announcement in January 2010 by the New Zealand and Indian Trade Ministers to begin these negotiations. In 2009, a joint feasibility study had concluded that the two economies are largely complementary, and a FTA would deliver an outcome of genuine mutual benefit.
Delivery of a high quality trade agreement will raise the profile of New Zealand businesses in India and assist in developing their understanding of the Indian market. An FTA would facilitate connections and act as a catalyst for trade promotion, as well as underpinning stronger bilateral interaction and cooperation in related areas (eg sanitary and phytosanitary issues).
For more details read the Ministry’s New Zealand-India FTA page.
Two-way goods trade between New Zealand and India is valued at over NZ$1.25 billion (up from NZ$950 million two years ago). Exports were worth NZ$917 million for the year ending March 2011, nearly double our exports two years ago. India is now New Zealand’s 7th largest market. Imports from India were valued at NZ$370 million for the year ending March 2011.
The main New Zealand export items to India are primary commodities (see ‘Key Facts’ section below for trade statistics). Coal exports have led the increase in New Zealand trade with India in recent years. Dairy products, fruit and machinery have recently become significant trade items. Log exports and wood pulp continue to strengthen, along with hides and skins used in the manufacture of leather goods. Wool, as an input into Indian carpets, has traditionally been an important export to India, but is declining. There is great potential for exports to diversify, particularly through the free trade agreement currently under negotiation (see below), which aims not only to eliminate tariffs but address a range of non-tariff barriers.
There has been steady growth in our services trade with India, most notably in tourism and education (see below). Opportunities for growth in other services sectors and in investment include professional and business services, environmental services, engineering and construction services, and services incidental to agriculture and forestry.
India’s average tariff overall is 11.9% but this varies markedly across sectors. High tariffs on items of interest to New Zealand, particularly agricultural and value-added products, continue to restrict our exports. In recent years, however, India’s average applied tariff rate has reduced in line with its tariff policy and WTO commitments. India’s non-tariff barriers, particularly sanitary and phytosanitary (quarantine) barriers, continue to restrict New Zealand exports to India.
New Zealand and Indian officials meet to discuss bilateral trade policy and access issues during the New Zealand/India Joint Trade Committee (JTC). The JTC was established under the New Zealand/India Trade Agreement signed during the visit of Prime Minister Rajiv Gandhi to New Zealand in October 1986.
India is one of New Zealand's fastest growing education markets, now our fourth largest (after China, South Korea, and Japan). There were 9.065 international fee-paying students fron India in New Zealand in 2010 (who contributed about NZ$100 million to the local economy), up from 4,600 in 2008. (For more detailed information, see the statistics section of the Education Counts website). Most Indian students are enrolled in private training institutes (47%) and polytechnics (36%), with a small proportion in universities (16%).
India’s Minister of Human Resources Development (with responsibility for both the education and tertiary education portfolios) Hon Kapil Sibal visited New Zealand from 10 to 14 April 2010. The New Zealand-India Education Cooperation Arrangement, first signed in 2005, was formally renewed during his visit. The Arrangement is a broad framework for bilateral cooperation on education. It established an Education Joint Working Group of senior officials, which has met twice: in Wellington in January 2008, and in New Delhi in February 2010. A visit to New Zealand in January 2010 by a senior Indian delegation focussed on technical and vocational education and training. India and New Zealand have agreed to continue education policy dialogue and implement projects in a number of areas.
Over 30,000 Indian tourists visited New Zealand in the year to March 2011, up from 16,000 in 2004. India is New Zealand’s 10th largest source of visitors. Indian visitors prefer to come to New Zealand during their summer (April to June), making them an important source of visitors for New Zealand's autumn shoulder season.
The Bollywood connection, especially in Queenstown, has been instrumental in stimulating tourism and links with New Zealand’s film production industry. This partnership was illustrated by the 2010 release of "I Hate Luv Stories", which was filmed partly in Queenstown. (For more information on tourism links, see www.tourismNew Zealand.com/markets-and-stats/south-east-asia/india and www.New Zealand.com/travel/india/india_home.cfm.)
Negotiations are underway for a bilateral Film Co-Production Agreement which would encourage more cooperation between the New Zealand and Indian film industries and, it is hoped, greater tourism flows from India.
There is no direct air link between India and New Zealand. The majority of travellers transit through Singapore, Kuala Lumpur and Hong Kong. A bilateral Air Services Agreement was signed in 2006 (and updated in 2008), which provides for direct aircraft services to take place between Mumbai and Auckland. Additionally, New Zealand carriers can code-share to five Indian cities (Mumbai, NewDelhi, Chennai, Hyderabad and Kolkata) and Indian carriers can code-share to five New Zealand cities (Auckland, Wellington, Christchurch, Queenstown and Dunedin). These code share services can also be via Australia, Singapore, or Hong Kong.
There is a vibrant Indian community of over 100,000 in New Zealand (2006 census), around 2.5% of the population (see also the Te Ara Encyclopedia of New Zealand pages on Indians in New Zealand. New Zealanders of Indian origin are prominent in many sectors: public life (Governor General and MPs), business, medicine, education, sports and the arts. The community is spread throughout New Zealand, with the largest group in Auckland.
The Indian Minister of Overseas Indian Affairs regularly visits New Zealand and keeps in touch with the Indian community here.
New Zealand and India are cricketing nations and our teams play each other frequently at international events and tour each others’ countries. India hosted most of the matches for the Cricket World Cup in 2011. The New Zealand Black Caps toured India in November/December 2010. In recent years a number of New Zealand cricket players have been members of teams in the high profile Indian Premier League (IPL).
Some 200 New Zealand athletes competed in the 2010 Commonwealth Games hosted by India in New Delhi, 3-14 October. These Games saw India give its best performance at a major international sporting event, winning the second highest tally of medals (101). New Zealand competed with distinction, winning 36 medals. The Governor General Hon Sir Anand Satyanand, visited India during the Commonwealth Games to represent the New Zealand Government and lend support to the New Zealand Team.
Diwali, the Indian festival of lights, has become one of the largest festive events in New Zealand's cultural calendar. Annual Diwali festivals are held in Auckland and Wellington. The Asia New Zealand Foundation and community groups have made these occasions highly successful with all New Zealanders.
The New Zealand International Festival of the Arts has featured Indian artists. In recent years there have been Indian entries in the World of Wearable Art show in Wellington, culminating in an Indian entry winning the supreme design award in 2010. In conjunction with the Fashion Design Council of India, the New Zealand High Commission in New Delhi hosts an increasingly popular annual World of Wearable Art event.
In May 2003, as part of India’s celebration of the 50th anniversary of the ascent of Everest, Sir Edmund Hillary was honoured by the Indian government. A plaque was presented to Sir Ed by then Indian Prime Minister, Atal Bihari Vajpayee, and two roads in front of the New Zealand High Commission were named after Sir Ed and Tenzing Norgay. In January 2008 Sir Ed was posthumously awarded the “Padma Vibhushan”, one of India’s highest civilian honours.
While New Zealand does not have a dedicated aid programme for India, in recent years some support has been provided to NGOs and relief agencies working in India. In 2008/2009, New Zealand provided NZ$3.18 million of funding for non-governmental organisations (NGOs) and relief agencies working in India under the Kaihono hei Oranga o te Ao/ Partnerships for International Community Development (KOHA-PICD) and Humanitarian Action Fund (HAF) (these funds are no longer active). Opportunities remain for New Zealand NGOs to apply for funding from the Sustainable Development Fund (SDF), which emphasises economic development initiatives.
Prime Ministerial visits occurred in 2004 (Rt Hon Helen Clark) and 1986 (PM Rajiv Gandhi). In February 2010 Rahul Gandhi MP, Rajiv Gandhi’s son, visited New Zealand as the inaugural Sir Edmund Hillary Fellow.
Land Area: 3.3 million sq km
Population: 1.184 billion (2010 estimate, Economist Intelligence Unit)
Capital City: New Delhi
Religion: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, others 1.8%
Official Language: Hindi is the national language and primary tongue of 30% of the population. There are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi and Sanskrit. English is widespread in business circles and as a second language.
Currency: Rupees (Rs).
Political system: India is a constitutional democracy with a bicameral legislature. India is a union of 28 states, each with their own legislature and state government. In addition, India has 7 Union Territories. At the centre, the Indian system is modelled on the Westminster system. The lower house is elected by universal adult suffrage. The President of India is the Head of the Union, but acts in accordance with the advice of the Council of Ministers, headed by the Prime Minister. In the states, the Governor is Head of the Executive, but it is the Council of Ministers headed by the Chief Minister in whom real executive power vests.
National government: United Progressive Alliance (dominant party: Indian National Congress).
National legislature: Bicameral legislature with 245 members in the Rajya Sabha or the upper house and 545 members in the Lok Sabha or the lower house.
Last election: May 2009
Next election due: by May 2014
Head of State: President Smt Pratibha Devisingh Patil
Head of Government: Prime Minister Dr Manmohan Singh.
Key Ministers:
Minister of Finance: Pranab Mukherjee
Minister of Home Affairs: P Chidambaram
Minister of Defence: A K Antony
Minister of Agriculture and Minister of Consumer Affairs, Food and Public Distribution: Sharad Pawar
Minister of Law and Justice: Veerappa Moily
Minister of External Affairs: S M Krishna
Minister of Steel: Virbhadra Singh
Minister of Heavy Industries and Public Enterprises: Vilasrao Deshmukh
Minister of Health and Family Welfare: Ghulam Nabi Azad
Minister of Power: Sushilkumar Shinde
Minister of Railways: Mamata Banerjee
Minister of New and Renewable Energy: Farooq Abdullah
Minister of Urban Development: S Jaipal Reddy
Minister of Road Transport and Highways: Kamal Nath
Minister of Overseas Indian Affairs: Vayalar Ravi
Minister of Human Resource Development: Kapil Sibal
Minister of Commerce and Industry: Anand Sharma
Main political parties:
Indian National Congress (Congress); Bharatiya Janata Party (BJP); All India Trinamool Congress (TMC); Dravida Munnetra Kazhagam (DMK); Samajwadi Party (SP); Rashtriya Janata Dal (RJD); Janata Dal (United); Bahujan Samaj Party (BSP); All India Dravida Munnetra Kazhagam (AIADMK); Bijou Janata Dal (BJD); Nationalist Congress Party (NCP); Communist Party of India (Marxist), or CPI (M)
Nominal GDP: US$1,590 billion (2010 estimate, EIU)
GDP breakdown (2008, World Bank):
GDP Per Capita: US$1,343 (2010 estimate, EIU)
GDP Per Capita (PPP): US$3,481 (2010 estimate, EIU)
Real GDP Growth: 8.8% (2010 estimate, EIU)
Exports FOB: US$210,458 million (2010 estimate, EIU)
Imports: US$339,190 million (2010, estimate, EIU)
Main merchandise exports: Engineering products, petroleum products, textiles and textile products, gems and jewellery.
Exchange rate: Rs 46 = US$1 (2010 average, EIU)
Consumer inflation: 12% (2010 estimate, EIU)
Gross external debt: US$239,641 billion (2010 estimate, EIU)
Budget balance (% of GDP): 5.5% (2010 forecast, EIU)
New Zealand/India bilateral trade figures are available online from Statistics New Zealand [external link].
Source: Statistics NZ (for the 12 months to March 2011).
New Zealand Exports |
NZ$917.32.3 million |
Main Exports |
Coal - NZ$322.6m (35.2%) Wood - NZ$196.3m (21.4%) Dairy products - NZ$136.9m (14.9%) Machinery - NZ$76.4m (8.3%) Wool - NZ$44.1m (4.8%) Hides and skins - NZ$29.2m (3.2%) Steel - NZ$16.2m (1.7%) Aluminium - NZ$18.1m (2.0%) Wood pulp - NZ$13.8m (1.5%) Fruit and nuts - NZ$11.4m (1.2%) |
New Zealand Imports |
NZ$369.0 million |
Main Imports |
Medicines - NZ$47.4m (12.8%) Precious stones/metals - NZ$39.1m (10.6%) Electrical machinery - NZ$19.0m (5.1%) Misc textiles- NZ$18.2m (4.9%) Clothing- NZ$15.6m (4.2%) Machinery - NZ$11.1m (3.0%) Confidential items - $NZ10.6m (3.1%) Plastic - NZ$11.4m (3.1%) Leather - NZ$10.1m (2.7%) Chemicals - NZ$9.4m (2.5%)
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The Safetravel [external link] website provides a travel advisory for travellers to India.
