India has a modern economy with a large agricultural sector, diversified industry and a relatively large and sophisticated financial and service sector.

It is one of the fastest growing economies in the world, with growth averaging a rate of 9.5 percent between 2005 and 2007 and forecast growth of 8.6 percent for 2011.

India’s importance to New Zealand is also growing.  By early 2011, India was New Zealand’s seventh largest export market and two-way trade was valued at NZ$1.3 billion.

India and New Zealand have begun talks on a bilateral free trade agreement (FTA) and five rounds of negotiations have already taken place.

An FTA would offer opportunities for New Zealand businesses by improving market access and greater interaction and co-operation.

Opportunities

• There is strong interest for New Zealand to assist with improving food production and ensuring India can import safe, quality food to meet growing demand.
• There is clear political requirement to improve India’s food supply chain and opportunities for New Zealand companies exist in dairy, horticulture, meat processing and cool chains.
• A rising awareness of environmental issues and an active green building movement are creating opportunities in green technologies and building products.
• The aviation sector offers particularly promising opportunities for New Zealand in infrastructure, training, maintenance and repair, software and institution building.
• In India’s rapidly growing information and communications technology (ICT) sector, there’s significant potential for cooperative relationships focusing on New Zealand software innovation and Indian market reach.
• Market demand for New Zealand timber is increasing rapidly for use in construction, interiors, furniture and packaging. The long-term prospects for New Zealand radiata pine are excellent.
• Demand for overseas tertiary education in India is rapidly increasing. The high quality and lower fee structure of New Zealand’s education system appeal to Indian students.
• The Indian biotechnology sector is growing fast because of its low costs and availability of good manufacturing facilities. A number of Indian companies are global in reach and offer possibilities as strategic partners.