Encountering the unexpected in India

The overarching finding was that we have good ethics but lack business appetite.

As one respondent put it: “While the whole word is racing, New Zealand is pacing”.

According to the report, we reveal our lack of business appetite in a number of ways:

• a preference for transactional rather than long-term relationships
• a reluctance to understand Indian culture, consumer needs and market requirements
• an inflexible ‘take it or leave it’ approach
• low availability of information about New Zealand products and businesses
• lack of marketing and promotional material.

The report concludes that many of the comments about New Zealand businesses have been documented in other countries as well as India.

What makes India stand out is the enjoyment they find in the interpersonal side of business.

“It is disappointing,” the report concludes, “for Indian business people to find that although New Zealanders are honest and trustworthy, they take a seemingly cold, transactional approach to business with an emphasis on profit, not relationship.”

Indians find enjoyment in business and this enjoyment is perceived to be missing in New Zealanders.

Overall, it seems that a lack of interest and commitment is holding New Zealand businesses back from success in India.

That’s not the only problem.

Alan Koziarski is NZTE’s regional director for South and Southeast Asia.

He says the November 2008 terrorist attacks in Mumbai raised a negative profile for India.

“But in the longer term – and I’m talking about a few months after the bombing – the Indians are determined to make it business as usual.”

The terror strikes have, almost ironically, created business opportunities in the security industry – an area where New Zealand has much expertise.

Koziarski urges anyone considering a trip to India to check out the latest travel advisories on the Ministry of Foreign Affairs and Trade (MFAT) SafeTravel website.

He also recommends people register their travel intentions on the site.

While it’s important to acknowledge the tragedy of what happened in Mumbai, Koziarski says statistics add another perspective.

“In the past year, over 100,000 people died on Indian roads.”

There is still plenty of room for upside when it comes to our trade with India.

At the moment, our main exports are coal, wool, wood, wood pulp, machinery, hides and skins.

Coal exports, in particular, are flourishing.

India is our third fastest growing export market.

New Zealand exports rose from under $200 million in 2004 to $366 million in the year to December 2007.

FTA study underway

This could be set for a further boost.

New Zealand and Indian officials are conducting a joint study on the possibility of negotiating a bilateral Free Trade Agreement.

Once the study is completed, the two governments will consider its recommendations and decide whether to launch FTA negotiations.

If they decide to go ahead, MFAT, and other government agencies preparing for the negotiations, will consult stakeholders and invite written submissions.

No-one doubts India’s rapid rate of growth.

Every year 20 million people in India join the ranks of the middle class.

That’s like saying New Zealand’s entire population – more than four times over – emerges into a new world of possibility.

Expect lower growth as the global economy slows.