New Zealand eyes more bilateral trade with India

New Zealand is contemplating strengthening trade relations between India and itself in the coming years, in several sectors including IT and renewable energy.

Bilateral trade in goods and services between the two countries has increased by 20 per cent in the last two years to NZ$1.9 billion ($1.2 billion).

“India is our tenth largest export destination with two-way trade in goods and services totaling $1.2 billion in the year to June 2015. The majority of our trade is commodity-based. The country is also our sixth largest market for service exports, and there are growing opportunities for innovative technology suppliers,” New Zealand Minister of Justice, Courts, Broadcasting and Communications Amy Adams told Deccan Herald on Monday.

One of the major areas in which New Zealand is looking at collaboration is IT and allied services.

The country is home to several Indian IT bellwethers, including TCS, Infosys and Tech Mahindra, while over half-a-dozen large Kiwi IT companies (part of around 150 firms), have a presence in India. The country’s IT trade with India is to the tune of NZ$842 million.

“The IT sector is New Zeland’s third largest exporter, contributing 10 per cent of our GDP of NZ$220 billion, and is growing at nine per cent year-on-year,” Adams said.

“We are not a mass IT product producer, but provide innovative solutions. Also, we are not trying to compete with Indian companies, but rather want to add value to their offerings or use their scale,” she added.

The minister, who is leading a trade mission to India from September 21-25, will also be leading a delegation of clean-tech and renewable energy companies at the Ninth Renewable Energy India Expo in Greater Noida.

New Zealand plans to raise its renewable energy generating capabilities from 80-90 per cent by 2025, and could provide India’s fast growing renewable energy sector a boost by offering innovative assistance and advanced technologies.

“New Zealand has achieved expertise in solar, wind, hydro and geo-thermal energy generation. With India, we want to see business partnerships in several areas, which will foster two-way learning and opportunties,” Adams said.

The two countries commenced talks for an FTA in 2010, which is likely to be concluded in the near future. It would open up opportunities for trade on various fronts.