INZBC Report 2025 Digital

GROW WITH INDIA

THE NEW ZEALAND INDIA TRADE REPORT - 2025

Researched and prepared by

Research Partner

GROW WITH INDIA

THE NEW ZEALAND INDIA TRADE REPORT - 2025

Researched and prepared by

Research Partner

Table of Contents Foreword

01

2023-2024 Retrospective

06

2025 Summary

20

Sector Perspectives

27

Primary Industries

28

Manufacturing

40

Education

49

Tourism

57

Services

67

Trade Enablers - Immigration,

73

Sports Diplomacy State Perspectives

85

About us

119

Acknowledgements

120

End Notes

124

Foreword - INZBC Looking back on 2024, one could be forgiven for thinking that trade between New Zealand and India is in a healthy state. Post-Covid, our exports and imports have both rebounded (albeit not quite to pre-Covid levels). Exports to India especially, have risen to the point where exports and imports are nearly the same. The future looks bright… or does it?

Digging down a little deeper to a sector level, we see that services exports continue to be dominated by education and tourism and are well down on pre-Covid levels, the primary sector is doing better in 2024 than 2023 but it is well down on 2019, and we see that manufacturing appears to have had an excellent 2024 but most of that growth has been in the sale of scrap iron, copper, and aluminium.

Couple that with the meteoric performance of other countries that we might regard as our competitors – for example: Australia, the United Kingdom, and Canada - and it becomes clear that there is still plenty to do before we truly reach our trade potential with India.

And why not? In this time of rising geopolitical tension and uncertainty around US tariffs affecting trading partners including China, why wouldn’t we look to build our relationship with the fifth-largest economy on earth? Why wouldn’t we look to strengthen our trade relationship with a country with which we share a long and rich history, and which has contributed so much to our own economy and enhanced the richness of our culture through its diaspora?

Frankly, today we are engaging with India with one arm tied behind our back and with only one eye open. We need to do better.

01

Foreword Yes, India is complex. Yes, its opportunities are challenging and require patience, understanding, and dexterity. Yes, there are barriers to market entry. But Kiwis are nothing if not a resilient and resourceful people, who pride themselves on the quality of their products, their ability to adapt and make real connections with people from all the world.

Growing this relationship means commitment. It means The New Zealand government and businesses working together to build deep, lasting relationships in India underpinned by a clear, consistent strategy.

Practically speaking, in INZBC New Zealand has the right partner to help the government and businesses deal with India as a trading partner. We are an organisation that have been dealing with India directly for many years and our leadership team is stacked with successful business leaders and key members of the Indian diaspora to this country.

In this report we look back at what has happened since our last report in 2023, and we look forward to what could happen, taking a deeper dive into Indian states and the opportunities available to key sectors.

Kia manawanui, kia ū ki te ara – be patient and steadfast, and stay on the path.

Bharat Chawla Chair INZBC

02

Foreword-

Duco Consultancy Kia Ora! This report is the result of a large research exercise undertaken by the team at Duco Consultancy.

Along the way we have learned a lot about the past, current, and future states of bilateral trade between India and New Zealand. To summarise: India represents a huge, largely untapped, trade opportunity for New Zealand. From India’s perspective there also considerable potential for investment in and trade with New Zealand.

Despite post-Covid improvements, it’s clear that this trade is currently not realising its potential.

The current New Zealand government – particularly through the visits and initiatives of Prime Minister Luxon and Minister McLay – has really set the ball rolling and established tremendous goodwill along the way. A free trade agreement seems like a real possibility now.

But there is much hard work left to be done: The New Zealand and Indian governments will need to continue to work closely and collaboratively on mutually beneficial trade outcomes, with relationships developed at multiple levels of our respective administrations.

New Zealand’s public and private sectors will need to work in tandem through all stages of the trade process, sharing knowledge, optimising trade conditions, and helping each other to develop opportunities.

Trade negotiations with India will need deft handling, patience, and a thorough understanding of India.

And there are underlying challenges that will need to be resolved: Two-way investments in our countries’ respective economies need to increase.

Mobility – in terms of direct flights between India and New Zealand, and in terms of immigration – urgently needs improvement.

Strategic focus is still lacking – the ‘game plan’ is not yet obvious.

03

Foreword One thing I have learned in my many years delivering complex projects is that an agile approach really works – you start with an MVP (a ‘minimal viable product’), with a good roadmap and a spirit of continuous innovation you build on that MVP to develop it into something strong, lasting, and constantly growing. That’s the same approach we need to take to develop our trade with India.

A great opportunity for all New Zealanders has presented itself, we have made a positive start, we have a lot of hard work to do and challenges to overcome, but with the right approach and attitude the sky is very much the limit.

We think you will learn a lot from this report, and we hope you will use these learnings wisely (and profitably) to ‘grow with India’.

Wishing you all the best,

Chandan Ohri Chief Executive Officer Duco Consultancy Limited

04

INDIA AND NEW ZEALAND

05

2023-2024 Retrospective Key takeaways from this section India is continuing its trajectory as a major global trading powerhouse Despite the considerable trading potential, New Zealand remains far down on the list of India’s trading partners Nevertheless, trade with India has picked up markedly over the last three years, driven mainly by increases in education and travel The government’s performance in progressing on our recommendations has been mixed. The recent PM’s visit was a highlight and shows great intent but more remains to be done to realise our trade potential with India.

Introduction We published our previous report ‘India & New Zealand: A Relationship Ready for its New Phase’ in April 2023. At that time the report garnered a lot of attention, and was a major topic of conversation during the New Zealand trade delegation that visited India shortly after the report was published.

The report featured several of our recommendations, directed at the New Zealand Government and designed to dramatically improve and grow the trade relationship between New Zealand and India. So, what has happened since the report has published and - possibly more importantly - what has not happened?

06

2023-2024 Retrospective India’s performance as an exporter and importer As shown in Figure 1.1, between 2023 and 2024, India experienced small declines in both exports and imports, mostly due to local and international economic downturns, though it must be noted that this happened after a strong post-Covid rebound.

US $ BILLION

India’s trade with the rest of the world in total goods

Figure 1.1 India’s trade with the rest of the world in total goods.

Source: Reserve Bank of India

Looking at imported commodities in Table 1.1, the decline in imports between 2023 and 2024 can be traced specifically to a decline in the import of mineral fuels, of which ~US$40B less was imported in 2024.

As shown in Table 1.1, there were gains and losses in most categories, with noticeable increases in the importation of iron, steel, and copper.

07

2023-2024 Retrospective Commodity

2023-2024

%Share

%Growth

Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes.

US$261B

36.4

US$219B

32.3

-16.05

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers,and parts.

US$68B

9.4

US$79B

11.7

17.24

Natural or cultured pearls,precious or semiprecious stones,pre.Metals,clad with pre.Metal and artcls thereof;imit.Jewlry;coin.

US$74B

10.3

US$78B

11.6

6.15

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.

US$54B

7.6

US$57B

8.5

5.58

Organic chemicals

US$29B

4.0

US$27B

3.9

-7.7

Plastic and articles thereof.

US$23B

3.2

US$22B

3.2

-5.59

Iron and steel

US$17.8B

2.5

US$18.6B

2.7

5.23

Animal or vegetable fats and oils and their cleavage products; pre. edible fats; animal or vegetable waxex.

US$21B

3.0

US$15B

2.2

-28.7

Optical, photographic cinematographic measuring, checking precision, medical or surgical inst. And apparatus parts and accessories thereof;

US$11.6B

1.6

US$12.9B

1.9

10.71

Aircraft, spacecraft, and parts thereof.

US$11.1B

1.6

US$12.7B

1.9

13.68

Copper and articles thereof.

US$7.6B

1.1

US$9.2B

1.4

21.03

Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, or radi. Elem.

Or of isotopes.

US$12.8B

1.8

US$9.1B

1.3

-28.81

Table 1.1 List of the top commodities imported into India Source: Ministry of Commerce and Industry India

08

2022-2023 %Share

2023-2024 Retrospective Top Indian export markets Number

Country

2023-24 (April-Sep)

% Share

2024-25 (April-Sep)

% Share

% Change

1

USA

US$38.2B

18.11

US$40.3B

18.92

5.47

2

UAE

US$15.5B

7.33

US$17.2B

8.07

11.24

3

Netherlands

US$9.6B

4.55

US$13.1B

6.14

36.29

4

UK

US$6.5B

3.08

US$7.3B

3.43

12.38

5

China PR

US$7.6B

3.61

US$6.9B

3.24

-9.35

6

Singapore

US$6.3B

3.00

US$6.5B

3.03

1.85

7

Saudi Arabia

US$5.3B

2.50

US$5.5B

2.56

3.55

8

Bangladesh

US$5.0B

2.39

US$5.2B

2.44

3.05

9

Germany

US$4.8B

2.30

US$5.1B

2.38

4.65

10

South Africa

US$4.2B

2.00

US$4.1B

1.93

-2.41

11

Malaysia

US$3.2B

1.52

US$4.1B

1.92

27.77

12

France

US$3.8B

1.79

US$4.1B

1.91

7.57

13

Australia

US$4.9B

2.32

US$4.0B

1.87

-18.53

14

Italy

US$4.3B

2.02

US$3.7B

1.74

-13.16

15

Brazil

US$3.4B

1.62

US$3.6B

1.68

4.53

16

Nepal

US$3.7B

1.73

US$3.5B

1.65

-3.89

17

Belgium

US$4.2B

2.00

US$3.2B

1.52

-23.19

18

Mexico

US$2.6B

1.21

US$3.1B

1.45

20.75

19

Hong Kong

US$4.0B

1.89

US$3.0B

1.42

-24.25

20

Japan

US$2.5B

1.18

US$3.0B

1.42

20.93

Table 1.2 List of the top Indian export markets Source: Ministry of Commerce and Industry India

As shown in Table 1.2, by some margin, USA is the main export location for Indian goods. Clearly the recent dramatic changes in the USA tariff regimen will be of major concern to Indian exporters, encouraging then to seek out alternative markets to offset risk.

09

2023-2024 Retrospective As shown in Table 1.3, much of India’s import trade is centered around mineral fuels, iron and steel, minerals, and manufacturing machinery, so it was no surprise to see the countries that feature in the top ten import locations – almost all are noted for their production of some or all of these commodities.

It’s notable that Australia is 13th on the list of exporters and 14th on the list of importers, although their trade has declined somewhat between 2023 and 2024.

It’s also worth noticing that many of the countries in the top 20 list of trading partners do not have a trade agreement with India.

New Zealand does not feature at all in the top 40 countries trading with India. We are currently around the 70th position in the list of India’s trading partners.

Top Indian import markets Number

Country

2023-24 (April-Sep)

% Share

2024-25 (April-Sep)

% Share

% Change

1

China P R

US$50.5B

15.28

US$56.3B

16.05

11.51

2

Russia

US$30.4B

9.21

US$32.2B

9.19

5.91

3

UAE

US$20.7B

6.27

US$31.5B

8.97

52.01

4

USA

US$21.8B

6.60

US$22.3B

6.36

2.28

5

Iraq

US$13.3B

4.03

US$13.8B

3.94

3.72

6

Saudi Arabia

US$15.2B

4.59

US$13.1B

3.75

-13.39

7

Indonesia

US$11.2B

3.39

US$12.2B

3.49

8.98

8

South Korea

US$10.1B

3.06

US$10.6B

3.03

5.00

9

Switzerland

US$10.0B

3.04

US$10.4B

2.97

3.64

10

Singapore

US$10.6B

3.22

US$10.4B

2.96

-2.37

11

Japan

US$8.8B

2.66

US$9.3B

2.65

5.83

12

Hong Kong

US$10.2B

3.09

US$9.2B

2.61

-10.36

13

Germany

US$9.0B

2.73

US$8.7B

2.49

-3.33

14

Australia

US$8.3B

2.51

US$6.8B

1.93

-18.65

15

Qatar

US$5.5B

1.68

US$6.1B

1.75

10.92

16

Malaysia

US$7.3B

2.21

US$6.1B

1.74

-16.70

17

Thailand

US$5.1B

1.53

US$6.0B

1.70

17.66

18

Vietnam Soc Rep

US$4.4B

1.34

US$5.5B

1.57

24.28

19

South Africa

US$5.1B

1.55

US$5.4B

1.55

6.19

20

Taiwan

US$3.8B

1.16

US$5.3B

1.53

39.97

Table 1.3 List of the top Indian import markets Source: Ministry of Commerce and Industry India

10

2023-2024 Retrospective As shown in Figure 1.2, the Indian services trade has picked up markedly, post-Covid, with the growth especially noticeable in the export of services – largely IT services – to the rest of the world.

US $ BILLION

India's trade with the rest of the world in total services

Figure 1.2 India’s trade with the rest of the world in total services Source: Ministry of Commerce and Industry India

11

2023-2024 Retrospective New Zealand’s performance as an exporter and importer

Over the last three years, New Zealand’s trade with the rest of the world has been somewhat flat, though exports are trending positively.

NZ $ BILLION

New Zealand's trade with the rest of the world in total goods and services

Figure 1.3 New Zealand’s trade with the rest of the world in total goods and services Source: Stats New Zealand

12

2023-2024 Retrospective

NZ $ BILLION

In terms of trade specifically between New Zealand and India, we see that imports from India have stayed largely flat, while exports to India have shown a marked improvement of over the last three years.

Figure 1.4 New Zealand’s trade with India in total goods and services Source: Stats New Zealand

NZ $ BILLION

Trade in commodities has been somewhat up and down, but exports from New Zealand to India have picked up markedly in the last year – driven mostly by increased trade in our scrap metals.

Figure 1.5 New Zealand’s trade with India in total goods Source: Stats New Zealand

13

2023-2024 Retrospective

NZ $ BILLION

Services, meanwhile, have shown an even more marked improvement since 2022, driven largely by post-Covid increases in education and travel to New Zealand.

Figure 1.6 New Zealand’s trade with India in total services Source: Stats.nz

14

2023-2024 Retrospective As shown in Figure 1.7, it's worth noting that India is - as of the fourth quarter of 2024 - New Zealand’s 12th largest trading partner, well behind New Zealand’s top trading partners China, Australia, and USA. Trading partner

Total imports

Two-way trade

Trade balance

NZ$(million)

China, People's Republic

5,802

4,746

10,548

1,057

Australia

4,092

4,546

8,638

-454

United States of America

4,241

3,381

7,621

860

European Union

1,535

3,483

5,018

-1,948

Singapore

754

1,926

2,680

-1,173

Japan

1,005

1,188

2,193

-183

Korea, Republic of

674

1,509

2,183

-835

United Kingdom

994

865

1,859

130

Thailand

411

777

1,187

-366

Malaysia

464

537

1,001

-74

Indonesia

505

488

993

17

India

383

432

815

-49

Viet Nam

310

450

759

-140

Taiwan

443

289

732

153

Canada

422

307

729

115

Hong Kong (Special Administrative Region)

427

114

541

312

Switzerland

118

359

478

-241

Saudi Arabia

343

73

416

270

Philippines

300

105

404

195

United Arab Emirates

353

43

396

311

Figure 1.7 New Zealand’s top 20 trading partners (4Q 2024).

Source: Stats.nz

15

Total exports

2023-2024 Retrospective Our 2023 recommendations - how have we fared so far?

Our following table highlights the progress that has occurred in implementing the recommendations that INZBC made during our last report in 2023.

It is encouraging to see that many of the recommendations – particularly those concerning diplomatic investment – have been actioned and are showing great positive intent. Two years on, we still believe all these recommendations are crucial to maximise trade success with India.

Though the macro view may suggest that trade between New Zealand and India is progressing, the sector views will show that there are still considerable opportunities to significantly expand our trade with India and, correspondingly, much to do to ensure we realise those opportunities.

Red – little or no progress has been made in implementing the recommendation Amber – some progress has been made, but there is more to be done Green – good progress has been made in implementing the recommendation

16

Our 2023 recommendations

Observations to date

Conclusion

Finish the job started with the ’India-New Zealand 2025’ work and its precursors. Commission an updated New Zealand strategy for India. It must involve all necessary Ministries, Trade and NGO stakeholders.

The government has taken a strategic clear approach to India. There has been significant increased Ministerial contact and engagement between India and New Zealand.

This is extremely positive. The recent launch of FTA negotiations is a particular highlight of the India strategy.

Good progress is being made

Set a target (eg to double New Zealand’s two-way trade with India in five years). Work with industry to identify the easy wins and focus on them.

The government has taken several steps to boost trade with India including the launch of FTA negotiations. NZTE has worked with exporters interested in India and developed a range of programme for market entry.

Good ongoing progress

Facilitate and support the coordination and focus of effort, by bringing together the major trade stakeholder groups to co-design a model for an IndiaNew Zealand Leadership Forum.

There has been discussion on this topic, and the PM attended the India NZ Economic Forum in March 2025.

This could be a model for such engagements going forward.

Ongoing

Prioritize Diplomatic investment in taking the New Zealand-India relationship to its next phase, including regular scheduled Ministerial visits and reallocation of resources.

Excellent progress has been made in conducting highlevel ministerial visits and interactions. The visits by Minister McLay and the PM being obvious highlights in the last 12 months. This investment will undoubtedly realise great dividends.

Good progress

Support INZBC efforts in making our institutions and businesses more ‘India-capable’. Agree on and plan a once-a-year Government/Business Delegation to India.

Early attempts to involve INZBC in trade delegations succeeded The PM’s mission leveraged the Indian diaspora in New Zealand – as has been done successfully in other countries.

Good early progress.

2023-2024 Retrospective

17

Our 2023 recommendations

Observations to date

Conclusion

Direct Government agencies, especially Tourism New Zealand, Education New Zealand, Immigration New Zealand and New Zealand Trade and Enterprise, to work actively with New Zealand International Airports and Airlines to develop a compelling case for more air services (including direct services) between New Zealand and India.

At the time of writing, an MOU has been signed to initiate code-sharing on flight between New Zealand and India, with direct flights to start 2028. This is a very promising development.

Good progress has been made – this is clearly heading in the right direction.

Implement faster processing of tourist visas and grant longer validity periods, with the possibility of multientry and multi-year visas, or a defined visa-free entry period.

There has been general increase in tourists from India, and the work that Tourism New Zealand is doing to attract more visitors. In Nov 24, arrivals from India were 129% of pre-Covid levels with holiday arrivals fully recovering to 109%.

Moving in the right direction.

Review our immigration policies to make it easier for Indian nationals to settle in New Zealand and contribute to the economy.

India and New Zealand have launched negotiations for an arrangement facilitating the mobility of professionals and skilled workers. This means that there will be a commitment to work on a formal agreement to make it easier for skilled Indians to work, live in NZ with and easier path to work permits.

Moving in the right direction.

Proactively encourage opportunities for Indian students to study in New Zealand, with a targeted fee structure or rebate and providing a faster pathway to student visas.

In their Joint statement Prime Minister Modi and Luxon “encouraged the creation of further opportunities for Indian students seeking quality education programmes in New Zealand.”

There is a role for the private sector to leverage this opportunity.

Beginning with horticulture, introduce programs to simultaneously address skilled seasonal labour shortages in the horticultural sectors, while training Indian horticulturalists in New Zealand by New Zealand and Pacific technical experts to industry standards recognized in New Zealand and the UK.

India and New Zealand have initiated new cooperation on horticulture and forestry, including: the signing of the Memorandum of Cooperation on Horticulture which would enhance bilateral cooperation by promoting knowledge and research exchanges, development of post-harvest and marketing infrastructure; and the signing of a Letter of Intent on Forestry Cooperation that encourages policy dialogues and technical exchanges.

Moving in the right direction.

Address phytosanitary issues impacting forestry sector trade.

An interim solution to these issues has been negotiated and has had a substantial improvement in the forestry exports, but this is not a permanent solution.

Good progress made.

Support current and future New Zealand primary sector collaboration efforts.

There have been positive steps to increase collaboration, with the kiwifruit industry taking a lead on this.

Clearly moving in the right direction.

Explore opportunities to strengthen financial cooperation with India; to understand and facilitate smoother trade in alignment with India’s moves to make its banking systems more internationally accessible.

Within the context of FTA negotiations, the Prime Ministers Luxon and Modi agreed to discussions between respective authorities on both sides to explore early implementation of cooperation in the digital payments sector.

Great progress being made as a part of FTA negotiations.

Facilitate and resource an India-New Zealand Centre of Excellence, dedicated to research and reference that allows us to better understand the diverse needs of the Indian environment and the commercial, tax and employment regulatory settings.

There is an India-New Zealand Centre of Excellence, but insufficient support has been given to it.

More progress required.

2023-2024 Retrospective

18

Our 2023 recommendations

Observations to date

Conclusion

Direct the New Zealand Story leadership to convene a special session to develop a targeted narrative on what New Zealand has to offer India, including a focus on tech and high-end manufacturing capabilities.

Several events have taken place. This is moving in the right Great progress made. direction and needs to continue.

Invite the President of India, the first indigenous woman This visit took place in August 2024 and was very well Head of State in its history, to visit New Zealand. received.

President’s visit has taken place and an invite to PM Modi has been extended.

Consult the cultural and business sectors on the possibility of developing a major cultural exhibition For the first time, a Kapa Haka group accompanied the highlighting Māori art and New Zealand multicultural Prime Minister’s recent delegation to India. We welcome imagery which could be deployed strategically in select this initiative and encourage more such cultural engages.

Indian cities as the basis for a promotional campaign.

Good progress made, but more to be done.

State Perspectives

19

2025 summary Introduction 2025 presents new opportunities in trade between New Zealand and India. Post-pandemic trade numbers are improving. The current New Zealand government has shown a much greater interest in trade with India, culminating in a highly significant and successful Prime Minister’s trade mission to India earlier this year. The fruits of this mission are already apparent – with a resumption in discussions on a free trade agreement, and a commitment to direct flight connectivity between the two countries, amongst other initiatives.

With this momentum in mind, our intention for this document is to take a much broader and deeper view than previously of the trade possibilities between New Zealand and India – drilling down into individual economic sectors and Indian states.

In this section we summarise our findings on each of the main sectors at play in the trade between New Zealand and India. Within each sector we look at the current trade situation, the potential for future trade, and our recommendations for increasing trade.

For a deeper dive into the information summarised here, we encourage you to read the detailed Sector Perspectives and the State Perspectives sections later in the document.

20

2025 summary Primary Industries In 2024, New Zealand’s primary industries sector exports to India totalled NZ$363M. While this was an improvement on the previous year, it is still significantly below pre-pandemic levels (e.g., NZ$548M in 2018) and quite small relative to our other major trading partners.

Our exports to India are dominated by fruit, wood, wool, and dairy products.

Imports of primary industry products from India to New Zealand were significantly less than exports from New Zealand in 2024 and restricted mainly to spices.

Based purely on the amount of a particular goods category that India imports from the world, and the amount of the same goods category than New Zealand exports to the world, one can conclude that there is a potential to grow New Zealand’s exports to India in several categories, including wood products, animal by-products, fruits, and wool. It’s a simplistic analysis, but it has uncovered some interesting opportunities that we believe are worth further exploration.

We recommend the following to increase trade in this sector: Work collaboratively across New Zealand primary industries and government agencies to achieve common goals.

Build strong partnerships and relationships with Indian distributors, agents, and partners who understand the Indian market.

Carry out thorough market research to understand India’s diverse consumer base and regional preferences.

Focus on developing quality products and push the ‘New Zealand brand’, capitalising on New Zealand’s reputation for sustainable, organic products.

Work with India to strengthen supply chains – particularly improving cold chain infrastructure.

21

2025 summary Manufacturing In 2024, New Zealand’s manufacturing sector exports to India totalled NZ$346M. This is higher than it has ever been (it was NZ$153M in 2018), though it is quite small relative to our other major trading partners.

Our exports to India include scrap metals, medical apparatus, electrical machinery, and pharmaceutical products.

Imports of manufactured products from India to New Zealand were significantly greater than exports from New Zealand in 2024 and included pharmaceuticals, machinery, and vehicles.

Based purely on the amount of a particular goods category that India imports from the world, and the amount of the same goods category than New Zealand exports to the world, one can conclude that there is a potential to grow New Zealand’s exports to India in several categories, including medical devices, blood serums, scrap metal, edible oils, and ice cream. It’s a simplistic analysis, but it has uncovered some interesting opportunities that we believe are worth further exploration.

We recommend the following to increase trade in this sector: Carry out thorough market research to understand India’s diverse consumer base and regional preferences.

Build strong partnerships and relationships with Indian distributors, agents, and partners who understand the Indian market.

Invest in digital marketing efforts to reach a wider audience in India – taking advantage of an increasingly tech-savvy population.

Focus on products manufactured to high-quality standards, capitalising on New Zealand’s reputation for quality, integrity, and sustainability.

Further explore the export of manufacturing by-products – such as scrap metals.

22

2025 summary Education Education – where foreign students come to New Zealand temporarily to study – has long been a major contributor to New Zealand’s exports. Indian students have been an important part of that contribution – in 2018 Indian students contributed NZ$802M in expenditure to the New Zealand economy. Covid-19 drastically cut that amount to less than NZ$200M but, since lockdown, the figure has recovered somewhat to NZ$382M in 2024.

Analysts and statistical modelers are predicting returns to pre-pandemic levels of Indian students in the next few years, which is encouraging for the sector, though countries such as Canada, UK, and Australia are already seeing growth in Indian student numbers beyond pre-pandemic levels.

The market is already there, and growth to NZ$1B in realised expenditure is well within the realms of possibility.

There are several factors that come into play when a country is looking to attract foreign students: economic conditions; university rankings, scholarships, visa processing, and in-study and poststudy work options amongst others. The fine balance between these factors will be the difference between an Indian student choosing to study in New Zealand versus another country.

We recommend the following to increase trade in this sector: Understand and leverage economic factors that will attract Indian students to New Zealand.

Strengthen university and private training establishment (PTE) offerings – to make them more appealing to Indian students.

Increase scholarships that target Indian students.

Simplify visa requirements – especially the requirement for upfront tuition payments.

Expand work rights to enhance in-study and post-study work opportunities.

23

2025 summary Tourism Tourism – long a cornerstone of the New Zealand economy – is returning to pre-pandemic levels and Indian visitors are already arriving in record numbers and spending almost NZ$4.5k per trip, which is comparable to visitors from Canada, and considerably more than those from Australia and Japan.

Though the post-pandemic rebound is happening for tourism generally and Indian tourists in particular, Indian tourists, with their increasing disposable income and preference for long-haul destinations, represent a crucial target market.

There is a prevalence of older Indian tourists visiting families, leaving tremendous untapped potential of younger Indian tourists visiting for holidays and business.

The appeal of Māori cultural tourism to Indian tourists needs to be promoted as in surveys it consistently scores highly in terms of Indian tourist interest areas. The lack of directly connecting flights continues to be a deterrent to travel and when this finally happens it will undoubtedly bolster the Indian tourist numbers. Lastly visa processing – in terms of time and money – needs to be improved as it is currently a deterrent.

We recommend the following to increase trade in this sector: Expand targeted marketing in India, focusing on unique New Zealand experiences.

Streamline visitor visa procedures for Indian tourists.

Facilitate more direct connectivity between the two countries.

Support local businesses and Māori enterprises that promote cultural experiences and locally-sourced products.

24

2025 summary Other Services In 2024, not including tourism and education, New Zealand’s services sector exports to India totalled NZ$47M. Of this total, the majority was made up of ‘government services’, which are typically services delivered by New Zealand companies to embassies and consulates within New Zealand. The remaining services totalled a modest NZ$7.35M. Not surprisingly, led by IT, New Zealand generally imported much more services from India than they exported to India.

Other countries have had huge success collaborating with Indian organisation to mega projects in the 2023-2024 financial year India imported services to the value of US$178B. India is on a rapid growth trajectory and there are many service areas in India in need of assistance from service practitioners from developed nations like New Zealand. As with other sectors, this requires exporters to consider many factors unique to India.

We recommend the following to increase trade in this sector: Carry out thorough market research to understand India’s diverse consumer base, cultural nuances and local competition.

Develop service offerings tailored to work in India – price sensitive, adaptable, and delivering high-quality results.

Build strong partnerships and relationship. These partnerships may be private/public in nature, may include multiple companies, and multiple government agencies from both countries.

Leverage government support and relationships – taking advantage of programs and initiatives in both countries that support international trade and investment.

Leverage increased services imports to New Zealand to gain concessions on goods exports from New Zealand to India.

25

2025 summary Trade Enablers While researching and writing our sector-centric content, two areas, common to all sectors, revealed themselves as being vital to the overall success of trade between New Zealand and India. We call these areas ‘trade enablers’: 1. Immigration: this enabler, done right, benefits the New Zealand economy in a variety of ways: from tourism, to education, to bolstering local economies, to creating essential trade connections between New Zealand and India.

New Zealand does some things well in this area.

We have a transparent system – there is ready access to information, we have visa processing times that are generally thought to be reasonable, we confer post-study visa rights that are considered generous by worldstandards on foreign students.

Conversely, areas that are weak include high visa rejection rates for students, uncertainties over immigration policies, and the burden of proving English language proficiency. These are all areas we recommend need to be improved.

2. Sports Diplomacy: for the last 100 years there have been sporting events held been teams from India and New Zealand. These events and the sporting stars that take part in them can strengthen the ties between the two countries, ultimately leading to enduring trade partnerships at business and government levels.

26

In 1926 the Indian Army hockey team toured New Zealand and played a series of test matches against a New Zealand national team. The centennial celebrations in 2026 present an opportunity to energise broader diplomatic and trade conversations.

Similarly leveraging the sporting stars that the Indian diaspora has brought to New Zealand to promote trade opportunities, is an obvious way to take advantage of sporting diplomacy – as demonstrated with the inclusion of Ajaz Patel in recent New Zealand Prime Minister’s trade delegation to India.

For this trade enabler we recommend: Form a dedicated sports diplomacy task force.

Streamline sporting exchanges and visas for visiting athletes.

Promote multi-sport engagement beyond the traditional sports of cricket and hockey.

Support diaspora-led initiatives to improve sporting contacts between the two countries.

Leverage sports personalities in trade missions.

Invest in the 2026 India-New Zealand Hockey centenary.

Sector perspectives

This section takes a ‘deeper dive’ look at the major sectors that are exporting goods and services from New Zealand to India:

|

Primary Industries

|

Manufacturing (sometimes referred to as the ‘Secondary Sector’)

|

Services (sometimes referred to as the ‘Tertiary Sector’)

|

Education

|

Travel

Education and Travel typically fall under the services sector, but they form such a large part of that sector that we feel they are worthy of their own sections.

27

Primary Industries Sector

Background: In the context of this report, the ‘primary industries sector’ includes Agriculture (including farming, rearing livestock, and horticulture), Mining (including the extraction of minerals, oil, and gas), Forestry, and Fishing (including aquaculture).

Note that there is often a close relationship and overlap between the manufacturing and primary industries sectors (e.g., forestry and wood products), hence some of the points raised in this section may equally apply to the manufacturing sector and vice-versa.

Key takeaways from this section Trade with India in the Primary Industries Sector is growing but is yet to reach pre-Covid heights.

In comparison to our other major trading partners, trade with India in this sector is still quite small.

Among specific product categories there have been some significant increases in exports to India.

A review of trade statistics shows some intriguing potential for trade expansion.

We have several recommendations for how the trade with India can be increased.

28

Primary Industries Sector Trade situation today Bilateral trade in the primary industries between New Zealand and India is significant but somewhat imbalanced. The trade is heavily skewed towards exports from New Zealand to India: New Zealand exports several different primary products to India, while India's exports to New Zealand in this sector are much less substantial and largely limited to spices. This imbalance is not surprising given New Zealand’s high production of primary products for export, and its corresponding low demand for imports of such products.

As seen in Figure 2.1, as of the end of 2024, the trade relationship between New Zealand and India in the primary sector was growing again – though it is not nearly at its high point of seven years ago. As seen in Figure 2.2, relative to New Zealand’s other major trading partners, the Indian market remains small – and potentially untapped.

NZ $ Millions

Total exports from the New Zealand primary sector to India 2018-2024 (NZ$)

New Zealand primary sector exports to target countries in 2024 (NZ$)

Figure 2.1 Total Exports from the New Zealand Primary Sector to India 2018-20 Source: https://infoshare.stats.govt.nz/

Primary Sector Exports to Target Countries in 2024 (NZ$ Millions)

29

China

$15.1B

USA

$5.2B

Australia

$2.4B

United Kingdom

$832M

India

$363M

Figure 2.2 New Zealand Primary Sector Exports to Selected Countries in 2024 Source: https://infoshare.stats.govt.nz/

Primary Industries Sector New Zealand's exports to India are dominated by: Dairy products: This is a major component of New Zealand’s primary industries’ exports to India. However, compared to dairy exports to other countries, dairy exports to India are modest with the majority comprised of milk derivatives, such as albumins and caseins (specialised, advanced dairy protein products).

Wood and Wood Pulp: The log industry, in particular, has had a resurgence in trade following the temporary resolution of the long-standing phytosanitary issues.

Fruits: Fruits - particularly apples and kiwifruit - are the single biggest contributors to primary sector export trade with India.

Wool: New Zealand wool has a presence in the Indian textile industry and saw a significant resurgence in trade in 2024.

Figure 2.3 New Zealand’s Main Primary Sector Exports to India in 2024 Source: https://infoshare.stats.govt.nz/

30

Wool, fine or coarse animal hair; horsehair yarn and woven fabric

$77,281,002

Pulp of wood

$45,602,977

Wood and articles of wood

$76,699,595

Albuminoidal substances

$53,115,181

Oil seeds and oleaginous fruits

$5,906,245

Fruit and nuts, edible; peel of citrus fruit or melons

$85,174,015

Animal originated products

$4,448,460

Dairy produce; birds' eggs; natural honey

$3,599,940

Raw hides and skins (other than furskins) and leather

$3,841,482

Others

$7,594,381

Primary Industries Sector Among the product categories showing the most significant export growth over the last two years:

Fish and crustaceans, molluscs and other aquatic invertebrates – 328% growth

Fruit and nuts, edible; peel of citrus fruit or melons – 207% growth

Albuminoidal substances (primarily milk albumins including specialized dairy protein products) – 146% growth

Oil seeds and oleaginous fruits – 131% growth

Wood and articles of wood – 806% growth

There have been several major events that undoubtedly led to this growth, including: The recent resolution regarding New Zealand log exports to India involving the successful removal of a trade barrier related to methyl bromide fumigation, allowing New Zealand to resume log shipments to India after previously facing restrictions due to India's biosecurity concerns.

In the case of fruits, New Zealand is beginning to recover from the devastating impacts of Cyclone Gabrielle in 2023, leading to an increased availability of produce for export27. Indian demand for quality New Zealand avocados, apples, and kiwifruit has remained high.

31

Primary Industries Sector The impact of diplomatic efforts over the last year or so should not be understated. Trade delegations to India have clearly had an effect, as have the efforts of Trade Minister Todd McClay in establishing contacts with his Indian counterparts, directly helping to resolve trade issues, and streamline trade processes.

A noteworthy success story has been in the natural honey industry, where exports to India topped NZ$430k in 2024 – comfortably the industry’s highest export total to India in seven years.

On the other hand, there have been some significant declines in exports to India amongst some product categories, notably: Meat and edible meat offal – declined from $3M to $1M between 2023 and 2024 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes – declined from $65M to less than $2M between 2023 and 2024.

The decline in Meat and edible meat offal exports was likely driven by a decline in the production of sheep meat (mutton and lamb) and the success of other markets, such as the USA. The decline in Mineral fuels etc. exports was almost entirely due to the cessation in coal exports from New Zealand to India, which in turn seems likely to have been caused by several factors including closures of New Zealand mines, and India looking to other coal sources.

32

Primary Industries Sector Trade potential Analysis carried out on export data from 2021-2023 shows evidence of potential for most, if not all, the Primary Sector categories that New Zealand has found success exporting to India in the past. This information is speculative and is based purely on statistical data, but it does offer some intriguing possibilities for potential trade expansion, which could be followed up with more in-depth assessments.

Comparison of selected currently-traded Items with India 2021-2023 (in US$ 000’s) India’s imports from New Zealand

New Zealand’s exports to world

India’s imports from world

Product Label

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Albumins, incl. concentrates of two or more whey proteins containing by weight >80% whey proteins

$14,778

$20586

$23558

$232,602

$291,186

$229,946

$122,561

$147,236

$142,137

Chemical wood pulp, soda or sulphate (excl. dissolving grades)

$10,542

$21718

$12415

$317,076

$377,235

$269,345

$520,058

$877,586

$821,154

Recovered 'waste and scrap' paper or paperboard (excl. paper wool)

$12,060

$4,755

$6,428

$50,938

$31,615

$21,827

$1,789,400

$1,946,044

$1,421,305

Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared (excl. rough-cut ...)

$26,913

$7,537

$6,030

$2,823,039 $2,265,076

$1,998,664

$1,039,367

$1,049,048

$942,053

Fibreboard of wood or other ligneous materials, whether or not agglomerated with resins

$3,679

$3,295

$2,709

$185,261

$218,748

$166,132

$59,058

$78,548

$124,270

Meat of sheep or goats, fresh, chilled or frozen

$258

$1,174

$2,282

$2,903,195

$2,773,166

$2,286,876

$331

$1,372

$3,107

Casein, caseinates and other casein derivatives; casein glues (excl. those packaged as glue ...)

$1,121

$1,574

$1,720

$885,322

$1,184,035

$1,025,951

$15,814

$11,692

$22,422

Bones and horn-cores and their powder and waste, unworked, defatted, simply prepared, treated ...

$599

$1,095

$1,500

$19,011

$12,889

$6,535

$1,917

$1,950

$2,335

Tanned or crust hides and skins of bovine 'incl. buffalo' or equine animals, without hair on

$1,138

$724

$815

$67,597

$61,481

$57,348

$101,126

$173,982

$122,938

Raw skins of sheep or lambs, fresh, or salted, dried, limed, pickled or otherwise preserved

$771

$774

$807

$22,979

$37,043

$21,208

$8,619

$9,601

$5,289

Table 2.1 Comparison of Selected Currently-traded Items with India 2021-2023 (in US$ 000s) Source: https://www.trademap.org/

33

Primary Industries Sector Table 2.1 shows a small sample of the products imported by India (not including apples, kiwifruit, cherries, and avocados), illustrating the size of this market and the opportunities for New Zealand primary sector organisations to increase their share.

Some inferences can be made, for example: wood products such as pulp and unprocessed logs appear to have considerable growth potential - especially considering New Zealand’s reputation for quality wood products. Animal by-products such as hides, bones, and skins, which support a wide range of Indian industries from fashion and footwear to automotive and home décor, appear to offer scope for further growth.

Comparison of selected fruit items with India 2021-2023 (in US$ 000’s) India’s imports from New Zealand

New Zealand’s exports to world

India’s imports from world

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Fresh apples

$40,846

$23,545

$23,160

$598,664

$569,834

$532,863

$377,427

$314,345

$363,256

Fresh kiwifruit

$14,233

$9,702

$6,594

$1,985,239

$1,691,894

$1,480,685

$69,066

$63,051

$61,335

Fresh or dried avocados

$739

$1,544

$871

$77,728

$51,739

$27,722

$2,467

$6,364

$10,432

Fresh cherries (excl. sour cherries)

$0

$14

$0

$34,169

$49,888

$54,443

$4,618

$9,148

$11,063

Product Label

Table 2.2 Comparison of Selected Fruit Items with India 2021-2023 (in US$ 000’s)

Source: https://www.trademap.org/

Focusing in on New Zealand’s big four fruit exports, in Table 2.2 one can see evidence of considerable trade potential beyond the status quo. While there are many factors – internal and external – that influence the ability to maintain and increase these numbers year on year, it seems likely that the growing Indian middle-class, who are keen to sample healthy, quality product from countries like New Zealand, will be a catalyst for growth in the exports of these product categories.

Table 2.3 shows another small sample of products imported by India, where New Zealand has capacity to export but is not currently exporting to India.

Some interesting opportunities emerge from this analysis. Aside from the more obvious wood pulp-related product categories, there are wool, cotton, and wood product categories of a more specialised nature that might offer opportunities for those respective industries. These are worthy of consideration and investigation.

34

Primary Industries Sector Comparison of selected not-currently-traded items with India 2021-2023 (in US$ 000’s) India’s imports from New Zealand

New Zealand’s exports to world

Product Label

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Woven fabrics of cotton, containing >= 85% cotton by weight and weighing > 200 g/m²

$0

$0

$0

$857

$863

$623

$37,489

$40,719

$31,180

Woven fabrics of cotton, containing >= 85% cotton by weight and weighing <= 200 g/m²

$0

$0

$0

$920

$321

$78

$76,295

$108,747

$92,841

Woven fabrics of combed wool or of combed fine animal hair (excl. fabrics for technical purposes ...)

$0

$0

$0

$996

$1,592

$902

$8,406

$22,742

$36,630

Woven fabrics of carded wool or of carded fine animal hair (excl. fabrics for technical use ...)

$0

$0

$0

$240

$352

$351

$12,821

$27,863

$15,852

Carded or combed yarn of fine animal hair (excl. that of wool or that put up for retail sale)

$0

$0

$0

$391

$183

$394

$158

$289

$305

Yarn of combed wool (excl. that put up for retail sale)

$0

$0

$0

$1,699

$697

$1,180

$3,655

$6,428

$3,062

Fine or coarse animal hair, neither carded nor combed (excl. wool, hair and bristles used in ...)

$9

$0

$0

$852

$666

$709

$3,782

$5,703

$8,025

Chemical wood pulp, dissolving grades

$0

$0

$0

$129

$327

$298

$597,528

$765,520

$777,814

Mechanical wood pulp, not chemically treated

$0

$0

$0

$110,153

$144,420

$20,799

$2,722

$2,129

$5,119

Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, ...

$0

$0

$0

$357

$290

$272

$1,473

$2,740

$2,842

Tableware and kitchenware, of wood (excl. interior fittings, ornaments, coopers' products, ...)

$0

$0

$0

$1,559

$2,179

$1,010

$9,951

$19,664

$16,752

Builders' joinery and carpentry, of wood, incl. cellular wood panels, assembled flooring panels, ...

$0

$0

$0

$15,726

$13,021

$14,702

$41,803

$61,218

$52,100

Table 2.3 Comparison of Selected Not-currently-traded Items with India 2021-2023 (in US$ 000’s)

35

India’s imports from world

Source: https://www.trademap.org/

Primary Industries Sector Focus-group feedback The focus groups that we interacted with in compiling this report emphasised several key points: In some industries, there needs to be a better understanding of New Zealand as an ‘ingredients’ exporter and India as a ‘fresh products’ consumer.

While it is well-known that middle-class Indian consumers, have a considerable (and growing) demand for premium consumer food products – particularly fresh-food products such as red meats and avocados, Indian importers, fuelled by the Make in India initiative, have an almost insatiable need for raw ingredients for Indian manufactured goods, which we must not over-look. Producers need to be clear in their thinking about what market they are aiming for.

Opportunities exist to collaborate with Indian industry counterparts to provide technical assistance, and value-added services. A case in point is the proposal from the New Zealand kiwifruit industry to support Indian growers, sharing expertise to grow local counterseasonal production and therefor the overall kiwifruit market in India. This collaboration shows how international partnerships can contribute to local agricultural advancements, benefiting farmers, consumers, and the economy as a whole. This, paradoxically, can directly lead to the expansion of New Zealand’s kiwifruit trade with India and globally. Another area of mutually advantageous assistance is in improving cold chain infrastructure. Here New Zealand’s expertise can be applied to improving India’s infrastructure in this area and thereby improving the supply chain for New Zealand premium – and fragile – fresh-food products.

There is a need for a coordinated approach across New Zealand industries, in collaboration with the New Zealand government. For example, presenting a united voice from all New Zealand industries on key points such as the focus on New Zealand as a premium producer of healthy, sustainable food products. From a government perspective a formal mechanism like the Australia-India Business Exchange (AIBX)28 might be helpful.

36

Primary Industries Sector The importance of knowing India – its markets, its needs and wants, not just from a national perspective, but from a state and city perspective too. Important too, is the need to establish a long-term relationship with India – at all levels – from government, to sectors, to businesses, to individuals.

We should continue to explore the ‘blue economy’ – in particular, opportunities around aquaculture – and how this might be leveraged as a trade opportunity with India. Fish form a large part of the diet of many Indians, particularly those in coastal states such as Kerala. With the increased focus on healthy diets, quality international products, and sustainable food production, New Zealand’s advanced aquaculture expertise, and sustainable practices could present a relatively untapped trade opportunity.

37

Primary Industries Sector Recommendations for increasing trade 1. Work collaboratively across New Zealand industries and Government agencies to achieve common goals: Look to develop and share common ‘Brand New Zealand’ messages to the Indian market(s). This includes input from and coordination by NZTE and MFAT. This collaboration extends to the development of more sophisticated crossindustry products that better suit the Indian market(s) and helping to resolve complex supply chain issues (e.g., cold chain infrastructure).

2. Build strong partnerships and relationships: Establish strong ties with local distributors, agents, and partners who understand the Indian market. These partnerships can facilitate easier market entry and help navigate regulatory and logistical challenges. At the same time, look to build relationships with potential customers through the channels available. In the primary sector space, this point extends to providing expertise to primary technologies to Indian counterparts to increase collaborations and help expand markets.

3. Carry out market research and understanding: Conduct thorough market research to understand India's diverse consumer base and regional preferences. This includes identifying product demand, state preferences, cultural and dietary habits, and local and foreign competition – and potentially adjusting products to suit local preferences.

Pay particular attention to understanding the opportunities presented by the Make in

38

India initiative and be clear in your thinking between the export of raw and finished goods.

Primary Industries Sector Recommendations for increasing trade 4. Focus on quality and branding in consumer products: Focus on high-quality standards and build on and enhance New Zealand’s reputation for sustainable organic and specialty products. Launch targeted marketing campaigns to raise awareness and build demand for New Zealand products in India.

5. Strengthen supply chains: Invest in/improve logistics and distribution networks to ensure efficient and costeffective delivery of products to India. This includes improving cold chain infrastructure for perishable goods.

39

Manufacturing Sector

Background: In the context of this report, the ‘manufacturing sector’ includes food and beverage production, machinery and equipment manufacturing, processed wood and paper products, and the production of chemicals, polymers, and blood serums. Note that there is often a close relationship and overlap between the manufacturing (a.k.a. secondary) and primary sectors (e.g., paper products and forestry), hence many of the points raised in this section may equally apply to the primary sector and vice-versa.

Key takeaways from this section Trade with India in the Manufacturing Sector is growing quickly to levels that haven’t been seen before.

Nevertheless, in comparison to our other major trading partners, trade with India in this sector is still quite small.

Much of the overall increase is due to a rise in the export of scrap metals.

A review of trade statistics shows some potential for increasing current trade and for expansion into the export of new products.

We have several recommendations at the end of this section for how the trade with India can be increased.

40

Manufacturing Sector Trade situation today Today, New Zealand exports a range of manufactured goods to India, including machinery, electronic equipment, blood products, and processed foods. Meanwhile, India exports pharmaceuticals, textiles, and automotive components to New Zealand.

As of the end of 2024, the trade relationship between New Zealand and India in the manufacturing sector is growing again – dramatically in fact - after a few years of indifferent growth, though it remains small compared to New Zealand's major trading partners.

Total exports from the manufacturing sector to India 2018-2024 (NZ$) 350

NZ $ Millions

300 250 200 150 0

Figure 3.1 Total New Zealand Exports from the Manufacturing Sector to India 2018-2024 Source: https://infoshare.stats.govt.nz/

NZ $ Billions

Manufacturing sector exports to target countries in 2024 (NZ$)

41

Figure 3.2 New Zealand Manufacturing Sector Exports to Target Countries in 2024 Source: https://infoshare.stats.govt.nz/

Manufacturing Sector Significant product category contributors to the 2024 total include Organic Chemicals, Pharmaceutical Products, Iron and Steel, Copper Articles, Aluminium Articles, Electrical Machinery, and Medical Instruments and Apparatus.

Others

Confidential Items 10.3%

23.3%

Organic chemicals Pharmaceutical products

5.1% 2.6% 7.9% 2.9%

Optical, photographic, medical instruments

Electrical machinery and equipment

27.0%

Iron and Steel

17.7% 3.2%

Copper and articles thereof Figure 3.3 New Zealand Total Manufacturing Sector Exports by Category in 2024 Source: https://infoshare.stats.govt.nz/

42

Aluminium and articles therof

Manufacturing Sector Among the product categories showing the most significant export growth over the last two years are:

Organic Materials – 182% growth

Pharmaceutical Products – 57% growth

Iron and Steel – 64% growth

Copper and articles thereof – 688% growth

There have been several major events that likely led to this rapid growth: India’s stated need for materials to fuel their Make in India goals. Iron, Steel, Aluminium, and scrap Copper are natural beneficiaries of this initiative.

The impact of diplomatic efforts over the last year or so should not be understated. Trade delegations to India have clearly had an effect, as have the efforts of Trade Minister Todd McClay in establishing contacts with his Indian counterparts, directly helping to resolve trade issues, and streamline trade processes.

One noteworthy success story is that of one of our leading healthcare product manufacturers, who used their dedicated Indian subsidiary to sell products directly within the Indian market; this includes a range of respiratory care products. In 2024, thanks largely to their success, exports from New Zealand to India, this product category grew to N$27M (from NZ$19M the previous year).

43

Manufacturing Sector Trade potential Analysis carried out on export data from 2021-2023 shows that there is evidence of potential for most, if not all, the manufacturing categories that New Zealand has found success exporting to India in the past. This information is speculative and is based purely on statistical data, but it does offer some intriguing possibilities for potential trade expansion, which could be followed up with more in-depth assessments.

Comparison of selected currently-traded items with India 2021-2023 (in US$ 000’s) India’s imports from New Zealand

New Zealand’s exports to world

India’s imports from world

Product Label

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Waste and scrap, of aluminium (excluding slags, scale and the like from iron and steel production, ...)

$30,216

$31,869

$39,189

$93,255

$102,515

$86,994

$3,141,290

$3,871,527

$3,627,544

Ferrous waste and scrap; remelting scrap ingots of iron or steel (excl. slag, scale and other ...)

$31,414

$32,599

$38,515

$248,629

$246,215

$283,132

$3,978,243

$6,129,476

$6,785,154

Chemical wood pulp, soda or sulphate (excl. dissolving grades)

$10,542

$21,718

$12,415

$317,076

$377,235

$269,345

$520,058

$877,586

$821,154

Recovered "waste and scrap" paper or paperboard (excl. paper wool)

$12,060

$4,755

$6,428

$50,938

$31,615

$21,827

$1,789,400

$1,946,044

$1,421,305

Mechano-therapy appliances; massage apparatus; psychological aptitude-testing apparatus; ozone ...

$16,054

$7,199

$6,211

$640,124

$430,212

$401,237

$1,170,624

$259,523

$247,829

Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera ...

$6,850

$3,759

$3,538

$195,068

$195,125

$218,307

$1,142,392

$1,132,004

$989,411

Waste and scrap, of copper (excluding ingots or other similar unwrought shapes, of remelted ...)

$1,901

$3,663

$3,230

$57,357

$59,364

$56,453

$1,524,490

$1,688,720

$1,664,014

Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, ...

$2,080

$2,662

$3,145

$33,708

$36,472

$38,211

$1,676,861

$1,878,680

$2,033,235

Table 3.1 Comparison of Selected Currently-traded Items with India 2021-2023 (in US$ 000s) Source: https://www.trademap.org/

Table 3.1 and 3.2 show a small sample of the products imported by India, illustrating the size of these markets and the opportunities for New Zealand manufacturing organisations to increase their share of those markets.

44

Manufacturing Sector Comparison of selected currently-traded Items with India 2021-2023 (in US$ 000’s) India’s imports from New Zealand

New Zealand’s exports to world

Product Label

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Value in 2021

Value in 2022

Value in 2023

Groundnut oil and its fractions, whether or not refined, but not chemically modified

$0

$0

$0

$136

$26

$46

$568

$106

$577

Palm oil and its fractions, whether or not refined (excl. chemically modified)

$0

$0

$0

$59

$65

Ice cream and other edible ice, whether or not containing cocoa

$0

$0

$0

$40,975

$38,293

$56,804

$4,563

$8,744

$6,972

Chlorates and perchlorates; bromates and perbromates; iodates and periodates

$0

$0

$0

$12

$52

$104

$9,641

$15,602

$21,923

Sulphites; thiosulphates

$0

$0

$0

$5

$2

$41

$8,110

$11,989

$9,720

Sulphates; alums; peroxosulphates "persulphates"

$0

$0

$0

$44

$238

$158

$44,790

$45,027

$45,728

Carbonates; peroxocarbonates "percarbonates"; commercial ammonium carbonate containing ammonium ...

$0

$0

$0

$738

$750

$698

$364,202

$498,396

$520,789

Carbides, whether or not chemically defined

$0

$0

$0

$1

$0

$17

$97,118

$113,204

$102,964

Vinegar, fermented vinegar and substitutes for vinegar obtained from acetic acid

$0

$0

$0

$1,263

$1,109

$1,182

$3,108

$2,573

$2,096

Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other ...

$0

$0

$0

$138,483

$152,889

$154,449

$28,600

$14,987

$12,678

Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting ...

$0

$0

$0

$92

$68

$309

$186,615

$117,692

$91,244

$66

India’s imports from world

$9,568,456 $11,728,740

$8,786,359

Table 3.2 Comparison of Selected Not-currently-traded Items with India 2021-2023 (in US$ 000s) Source: https://www.trademap.org/

There is evidence of considerable opportunities in the export of basic oils required for food production. The Australians are already tapping into this market in a substantial way29. Other opportunities in traditionally luxury food items such as Ice Cream should be explored, especially given New Zealand’s reputation within this product category. The market for processed chemicals remains high and untapped.

45

Manufacturing Sector

The ‘secret’ to unlocking trade opportunities for manufacturers often come down to the basics. In our conversations with leaders from the manufacturing sector common themes emerged: contracts are seldom won on price, but rather by supplying a quality product, backed up by excellent customer service, and a willingness to take the time to establish lasting relationships with Indian counterparts – be they customers or agents.

Regarding quality products, New Zealand has some natural advantages: New Zealand blood serum manufacturers supply blood serum products to the Indian pharmaceutical industry. New Zealand’s largely grass-fed cattle provide the ideal animals to produce high-quality bovine serums.

Likewise, a reputation for excellent customer services is helping a New Zealand developer of water propulsion systems sell its products to the Indian Navy in the face of fierce offshore competition. It helps too that the company has a long association with India, going back to Sir Edmund Hilary’s ‘Ocean to Sky’ Ganges expedition in 1977.

46

Manufacturing Sector

In terms of building lasting relationships, most genuine relationships are typically built over years, rather than days. These relationships extend to local distributors and partners, who are often crucial to success.

And don’t expect success to happen overnight; our Manufacturing Sector focus group advised market entrants to expect a 3–5 year timeline for establishing a meaningful market impact, including performing thorough research of a potential market, engaging in targeted strategies, and undertaking patient relationship-building.

Having said that, a digital presence is becoming equally important for those manufacturers looking to sell their products to Indian consumers. India has approximately 1.2 billion mobile phone users, making it one of the largest mobile phone markets in the world. The widespread adoption of mobile phones in India is driven by affordable data plans, the availability of cost-effective smartphones, and the country's growing digital infrastructure. Manufacturers need to look to utilise such digital channels.

Finally, the old adage that ‘one person’s trash is another person’s treasure’ appears to literally hold true in the Indian import market. India, driven by an overwhelming desire to industrialise and the Make in India initiative, is desperate for the supply of raw product they can in turn use for their own manufacturing industries. A case in point: copper exports to India – of scrap copper from New Zealand’s own manufacturing efforts – have gone from strength to strength in the last few years and seem destined to remain on a growth path for some time to come.

47

Manufacturing Sector Recommendations for increasing trade Carry out Market Research and Understanding: Conduct thorough market research to understand India's diverse consumer base and regional preferences. This includes identifying product demand, cultural nuances, and local competition. Pay particular attention to understanding the opportunities presented by the Make in India initiative, as well as markets that have not previously been considered.

Build Strong Partnerships and Relationships: Establish strong ties with local distributors, agents, and partners who understand the Indian market. These partnerships can facilitate easier market entry and help navigate regulatory and logistical challenges. At the same time, look to build relationships with potential customers through the channels available.

Invest in a Digital Presence: Enhance digital marketing efforts to reach a wider audience in India. This includes using e-commerce platforms, social media, and other online channels to promote products.

Focus on Quality and Branding in Products: Focus on high-quality standards and look to build a strong brand reputation (including solid after-sales service). Indian consumers are increasingly quality-conscious, and New Zealand products can capitalise on a reputation for quality, integrity, and sustainability.

Explore the Export of Manufacturing By-Products: Increased exports of scrap Copper and Aluminium indicate a growing demand for essential by-products that can be converted into componentry for Indian-made products.

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Education Sector Background: Within the context of this report, the ‘Education Sector’ refers to students from India who come to New Zealand to study – typically in tertiary institutions.

The content for this section is taken largely from the ‘Education Sector Report’ by Sobhan Chatterjee and Partha Roop (31 October 2024).

Key takeaways from this section The number of Indian students studying in New Zealand is increasing, after a dramatic dropoff in numbers during Covid.

The number is still significantly under its peak in 2015.

Statistical analysis suggests a strong return in numbers, but the uptake is considerably less than what we are seeing in other developed nations.

Overseas students can bring enormous financial benefits to New Zealand.

There are many things that New Zealand can do to increase its attractiveness to Indian students.

Trade situation today More so than most sectors, and for obvious reasons, the Education Sector was dramatically impacted by the Covid-19 pandemic from 2020 until 2022. Overall numbers of international students enrolled in New Zealand tertiary institutions rapidly declined as existing students were forced to return home, and prospective students were prevented from travelling.

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Education Sector The numbers of Indian international students enrolled saw a similar decline to the overall trend, though there had already started to be a decline in the numbers of Indian students enrolled in Private Training Establishments since 2017.

Figure 4.1 Overall Student Enrolments to New Zealand 2013 to 2023 Source: https://public.tableau.com/app/profile/education.new.zealand

Indian student enrolments to New Zealand 2013 - 2023

Figure 4.2 Indian Student Enrolments to New Zealand 2013 - 2023 Source: https://public.tableau.com/app/profile/education.new.zealand

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Education Sector As seen in Table 4.1 and 4.2, a post-Covid-19 rebound is clearly underway, with initial trends looking positive, if somewhat underwhelming compared to pre-Covid-19 figures.

Total Temporary International Student Expenditure in New Zealand 2018-2024 (NZ$)

Indian Temporary International Student Expenditure 2018-2024 (NZ$)

2018

$4.37B

2018

$802M

2019

$4.39B

2019

$699M

2020

$3.78B

2020

$770M

2021

$2.82B

2021

$544M

2022

$1.67B

2022

$193M

2023

$2.68B

2023

$288M

2024

$3.26B

2024

$382M

Table 4.1 Total Temporary International Expenditure in New Zealand 2018-2024 Source: https://infoshare.stats.govt.nz/

Student

Table 4.2 Indian Temporary International Student Expenditure in New Zealand 2018-2024 Source: https://infoshare.stats.govt.nz/

NZ

Trade with rest of the world in education-related travel

Figure 4.3 New Zealand trade with the rest of the world in education related travel Source: https://infoshare.stats.govt.nz/

From a purely financial perspective, temporary international student expenditure (i.e., the amount of money temporary international students30 spent in New Zealand) peaked at NZ$4.39B shortly before the Covid 19 pandemic, and by 2024 stood at NZ$3.26B. The largest portion of this expenditure came from Chinese students.

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Education Sector

NZ

Trade with India in education-related travel

Figure 4.4 New Zealand trade with India in education related travel Source: https://infoshare.stats.govt.nz/

Specific expenditure numbers for Indian students peaked a little later in 2020 at NZ $770M, and last year the total expenditure was NZ $382M – consistent with the growth rates in numbers of student enrolments.

Trade potential As shown in the table to the right, recovery to pre-pandemic levels is underway, with some analysts predicting a return to overall pre-pandemic levels by 2031. Our research team at Auckland University has carried out a statistical analysis (see Figure 4.5) that has determined that in the case of universities and Te Pukenga a potential return to prepandemic levels is possible this year (though there are potential declines forecast beyond that point).

Statistical models aside, the number of potential Indian international students is vast. Some analysts put the current number at more than one million in 2032. The growing Indian middle class and its increasing affluence is well documented, as is the value that Indians place on quality education abroad. Significant growth continues to be seen in the numbers of Indian students attending tertiary institutions in the USA, UK, Canada, and Australia. New Zealand is also seeing growth post-pandemic, though not yet to the extent of other countries, and not yet to the levels of 2019.

52

Education Sector

Figure 4.5 Indian students in New Zealand tertiary institutions – actual and projected

The green curve is the actual data with the forecast, the blue curve is corrected for the years 2020-2021, and the red curve is corrected for the years 2020-2022.

The corresponding confidence intervals are shown around the mean forecast in the same colour. The forecast is shown for the years 2024-2027.

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Education Sector Indian students abroad – selected countries – change between 2019 and 2023 Table 4.3 Indian Students Abroad – Selected Countries – Change between 2019 and 2023 Source: Indian Education Ministry – Submission to Rajya Sabha 18 December 2024; Australian Government Department of Education; Education New Zealand Manapou ki te Ao

Looking at Table 4.3, clearly the overall number of Indian students looking to study abroad is on the rise. New Zealand has yet to fully catch that wave, but a return to pre-2018 levels would see a rise in expenditure to the NZ$1B level – making this a very attractive proposition.

Why study in New Zealand?

Today the world offers many options to the prospective Indian student looking to study abroad. As a nation looking to attract an increasing share of these students, New Zealand must understand what prospective Indian students are looking for in an overseas education.

Predicating factors From an economic point of view, statistical models created by Chatterjee and Roop concluded that New Zealand’s GDP (Gross Domestic Product), PPP (Purchasing Power Parity) rate, exchange rates, along with its average university rankings, are the most important predictors of the number of Indian student enrolments in New Zealand. This appears to support the contention that Indian students are very interested in the possibility of working while studying or remaining in New Zealand beyond the conclusion of their studies, particularly when the economy is strong.

Regarding university rankings, while New Zealand universities consistently out rank Indian universities, Australian universities typically out rank those of New Zealand33, Given the importance of this predicating factor and the relative success of Australia in attracting Indian students, more should be done to raise the ranking of New Zealand universities.

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Education Sector Regarding scholarships that tertiary institutions offer Indian students, countries like Canada and Australia use scholarships as tools to attract international students; Australia’s New Colombo Plan Scholarship Program34 fosters regional engagement, while Canadian scholarships37 target shortterm exchanges. Both countries offer country-specific scholarships for markets like India and Vietnam to attract top talent to the host country. Conversely, the Manaaki New Zealand Scholarships35 are focused on contributing to the recipient’s home country’s development, limiting their attractiveness to Indian students aiming for long-term overseas opportunities.

Several New Zealand universities do offer scholarships for Indian (and other) international students, for example the University of Otago’s Global Scholarships36, but Chatterjee and Roop conclude that overall the number of scholarship offered to prospective Indian students by New Zealand institutions is still quite low.

There is a delicate balance between economic conditions, university rankings, scholarships, enrolments, the possibility of in-study and post-study work, and fees charged by tertiary institutions. The perceived total value of the student’s choice of education destination will inevitably be offset by the direct cost of that education destination (i.e., enrolment fees minus scholarships gained).

The relative ease and speed with which genuine student visa requests are processed makes a big difference in the attractiveness of New Zealand for prospective students. Here New Zealand’s performance has been mixed – while our visa processing time is generally faster than Australia’s, the conditions placed on student visas (e.g., the requirement for upfront payment of the first year’s tuition) are tougher than those of competing countries such as Australia.

Finally, in-study and post-study work rights contribute significantly to New Zealand’s attractiveness to international students. While there are both in-study and post-study options38 available to international students, more can be done to enhance this area. The payoffs can be great – the UK’s dramatic increase in Indian student intake, for example, is seen by Indian observers as being ‘…partly driven by the introduction of the Graduate Route Visa in 2021, which allows international students to remain in the UK for up to two years (or three years for PhD graduates) to work after completing their studies.’39

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Education Sector Recommendations for increasing trade 1. Leverage economic predictors: Monitor economic factors like exchange rates, PPP, CPI, and unemployment rate, and be prepared to periodically adjust tuition fees and scholarships, making education, overall, more affordable and stable for Indian students.

2. Strengthen university, and PTE (Private Training Establishment) offerings: Focus on improving the appeal of PTEs and Te Pūkenga to an Indian student population, where Indian students already have a strong presence. In universities look to promote research opportunities and improve worldwide rankings – particularly relative to Australia.

3. Increase targeted scholarships: Introduce more country-specific scholarships for Indian students, that focus on long-term career and migration opportunities to enhance appeal.

4. Simplify visa requirements: Remove or reduce the requirement for upfront tuition payments and streamline visa processes to make New Zealand a more attractive destination for Indian students.

5. Expand work rights: Enhance in-study and post-study work rights to attract students seeking work experience and career opportunities, particularly in high-demand sectors.

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Tourism Background Within the context of this report, the tourism sector refers to tourists from India who come to visit New Zealand either for business, holiday, conferences, or visiting friends and relatives. The terms ‘tourist’ and ‘visitor’ are used interchangeably.

Key takeaways from this section While Indian visitors to New Zealand still lag behind those from other countries, India is the only country where visitor numbers have overtaken their pre-pandemic levels.

New Zealand should focus its efforts on attracting younger visitors to New Zealand through targeted tourism campaigns that emphasise New Zealand's uniqueness.

Increasing direct flights and streamlining visa requirements would reduce the current barriers Indian tourists face Figure 5.1 shows tourist arrivals in New Zealand from key source markets - before, during, and after Covid-19.

Figure 5.1 Yearly Average Tourist Arrivals to New Zealand (2014 to 2024) Source: New Zealand, based on Statistics New Zealand data, https://www.tourismnewzealand.com/insights/ tourism-data/

Although Indian visitor arrivals are smaller in number than those of Australia, China, the UK, and the USA, India is the only country where there was an increase post-pandemic, compared to arrivals pre-pandemic. While this is encouraging, New Zealand has substantial potential to attract more Indian visitors.

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Tourism Tourism sector as it stands today and the potential for tomorrow The tourism sector plays a pivotal role in the global economy, serving as a driver of growth and a platform for cultural exchange. Tourism was one of the most affected sectors during the Covid-19 pandemic, as border closures and lockdowns restricted mobility. However, in 2022, international travel rebounded significantly in nearly half of the OECD countries, with nations like Japan and New Zealand experiencing a strong recovery40. Tourism, particularly international tourism, has emerged as a key focus for global economies aiming to revitalise and expand their markets.

Prioritising Indian tourists represents not only an economic opportunity but also a strategic imperative. In 2019, international tourism (from all countries) contributed NZ$17.5 billion to the economy, supporting nearly 8% of the total workforce.41 However, this figure sharply declined during the pandemic, affecting local businesses and communities. By leveraging its spectacular natural landscapes, cultural offerings, and well-developed infrastructure to attract more Indian visitors, New Zealand has the potential to soon meet and exceed its overall pre-pandemic tourism revenue.

Indian tourists, with their increasing disposable income and preference for long-haul destinations, represent a critical market to target. India’s growing middle class and youthful population are increasingly seeking unique travel experiences abroad. By 2030, India’s working-age population will peak at 6.9%, further fuelling demand for international leisure and business travel.42 Figures 5.2 and 5.3 examine the profile of Indian visitor arrivals into New Zealand. Figure 5.2 shows that currently, Indian visitor arrivals in New Zealand are dominated by those aged between 55 and 64.

Moreover, arrivals from this older age category have been growing over time. On the contrary, arrivals among younger tourists, particularly those aged between 34 and 54, have been diminishing over time.

58

Tourism

Figure 5.2: Indian Tourist Arrivals by Age Group Source: International Visitor Arrivals, Tourism New Zealand, based on Statistics New Zealand data, https://www.tourismnewzealand.com/insights/tourism-data/

Figure 5.3: Indian Tourist Arrivals by Purpose of Visit Source: International Visitor Arrivals, Tourism New Zealand, based on Statistics New Zealand data, https://www.tourismnewzealand.com/insights/tourism-data/

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Tourism Visitors in the 55 – 64 age bracket are likely to be older family members visiting younger Indian relatives resident in New Zealand, while those in younger age brackets are likely to visit solely for tourism or for business purposes. Indeed, Figure 5.3, which plots the purpose of visit reported by visitors confirms this hypothesis. While pre-pandemic, Indian visitor arrivals were highest in the “Holiday” category, this has changed remarkably post-pandemic. In recent years, Indian visitor arrivals into New Zealand are dominated by those indicating that of the purpose of their visit is “Visiting Family and Relatives (VFR)”. Furthermore, arrivals in the “Business” and “Conference” categories are not only low, but also falling.

Undoubtedly, those visitors visiting family represent an important source of tourist arrivals for New Zealand, since family visits are likely to involve local tourism. However, younger tourists, specifically in the 34 – 44 age bracket, represent an important source of tourists to tap into, since they are of prime working age and therefore generally have more disposable income to spend. New Zealand’s comparative advantage in offering adventure sports and novel outdoor experiences represents a unique opportunity to attract these tourists that currently look to Europe or the USA for such travel experiences.

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Tourism Spending patterns Table 5.1 and Figure 5.4 explore spending patterns among visitors to New Zealand from other countries for the year 2022-2024.

Table 5.1: Visitor spending (2022-2024)

On Figure 5.4, covering the period from 2022 to 2024, the axis to the left and bars show total spending, while the axis to the right and the blue line show average spending per trip. In terms of total spending, Indian visitors spent an overall amount of NZ$234M. This amount falls below amounts spent by visitors Figure 5.4: Visitor spending (2022-2024) Source: International Visitor Arrivals, Tourism New Zealand, based on Statistics New Zealand data, https://www.tourismnewzealand.com/insights/tourism-data/

from Australia, China and the US, but roughly equals amounts spent by visitors from Canada and falls

above spending by visitors from Japan. However, in terms of average spending per trip, the Indian visitor spends approximately NZ$4500, an amount that is roughly similar to the American and Canadian visitor, and much higher than the average Australian and Japanese visitor.

This suggests that if tourist arrivals from India receive a boost (e.g., through a targeted ad campaign similar to Australia’s ‘Howzat for a Holiday?’ campaign),48 given average spending patterns per trip, India is set to be a major source of tourist revenue for the New Zealand economy.

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Tourism Māori cultural tourism Table 5.2 is taken from an International Visitor Survey that is administered online to departing tourists from New Zealand. Panel A shows the percentage of respondents by key countries of residence that say they ’agree’ with the statement, ’I would have liked to experience more of Māori culture while in NZ‘.

Table 5.2 Survey results – departing tourists from New Zealand Source: International Visitor Survey, Quarter 3 2024, MBIE, https://www.mbie.govt.nz/immigration-and-tourism/tourism-researchand-data/tourism-data-releases/international-visitor-survey-ivs

Strikingly, Indian tourists represent the group with the largest proportion of respondents agreeing to this statement. The percentage far outstrips the second largest country group – residents of the USA, suggesting that there is considerable appetite for experiencing Māori culture among Indian tourists.

Table 5.2 Survey results – departing tourists from New Zealand Source: International Visitor Survey, Quarter 3 2024, MBIE, https://www.mbie.govt.nz/immigration-and-tourism/tourism-researchand-data/tourism-data-releases/international-visitor-survey-ivs

Each column of Panel B shows a particular Māori cultural experience, with percentages representing the proportion of respondents that had that experience during their visit. Except for visiting a marae and eating food (dietary restrictions relating to religion can often limit the food experiences that Indian tourists can participate in overseas), Indian tourist percentages are consistently in the top three, underscoring the value Indian tourists place on the Māori cultural experience when visiting New Zealand.

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Tourism

Travelling to New Zealand Connectivity Air fares and travel time to a destination form a significant portion of costs tourists incur on their visits and is therefore an important determinant of tourist arrivals. Better air connectivity between New Zealand and India can reduce travel costs, particularly for those traveling from secondary Indian cities (i.e., those cities without an international airport) that currently face multiple layovers on their trip to New Zealand. An added expense for Indian tourists is the need to obtain a transit visa while transiting in Australia. Direct flights can solve this concern, boosting the potential for tourism, more so from secondary cities.

A case in point is the introduction of a direct flight route between Auckland and Guangzhou in April 2011.

At the time, Prime Minister Key touted that this new flight route would mean a NZ$75M boost to the New Zealand economy43. We can look at what happened to arrivals of Chinese visitors to New Zealand before and after this new route was introduced to evaluate its impact.

Figure 5.5: Tourist arrivals from Chinese Provinces into New Zealand (12-month centered moving average with six lagged and five forward terms in addition to the current year) Source: Table: Visitor arrivals from China by province and purpose (Monthly), Infoshare, Statistics NZ and authors’ calculations https://infoshare.stats.govt.nz/SelectVariables.aspx?pxID=521e29a1-4d43-42ca-a1b8-5acf1dddf645

63

Tourism Figure 5.5 shows tourist arrivals into New Zealand from Guangdong and Shanghai in China.

Before April 2011, tourist arrivals from Shanghai are well above arrivals from Guangdong. After 2011, there is a sharp uptick in arrivals from Guangdong, resulting in a narrower gap between the two.

This suggests that the introduction of the new flight route between Auckland and Guangzhou increased visitor arrivals from Guangzhou. Also, because we are zooming in on a few months before and after the new route introduction in April 2011, it is unlikely that other factors -such as an improvement in standards of living in Guangzhou, or changes in other direct flight routes between China and New Zealand -drove this increase in visitor arrivals.

Figure 5.6 shows total arrivals from China. It shows total tourist arrivals from China rising sharply after April 2011, suggesting that tourists were not simply diverted from other China-New Zealand routes to the Guangzhou – Auckland route. Indeed, the new route was associated with an overall increase in Chinese visitor arrivals into New Zealand.

Figure 5.6: Total tourist arrivals from China into New Zealand Source: Table: Visitor arrivals from China by province and purpose (Monthly), Infoshare, Statistics NZ https://infoshare.stats.govt.nz/SelectVariables.aspx?pxID=521e29a1-4d43-42ca-a1b8-5acf1dddf645

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Tourism Visas Table 5.3 gives a comparative picture of visitor visa processing times for New Zealand. Currently, a New Zealand visitor visa is processed in four weeks, as opposed to three weeks for the UK and one day for Australia. This can make New Zealand seem like a less attractive destination for Indian tourists, for whom applying for a visa can involve a time and monetary cost. Besides, the need to wait four weeks to obtain a visa makes it impossible for potential tourists to plan a holiday on short notice. This barrier may be most relevant to high-earning executives with demanding professional lives – exactly the group of tourists that will bring economic gains to NZ given their spending power and potential to enhance trade.

Table 5.3: Current Visitor Visa Processing Times https://www.immigration.govt.nz/new-zealand-visas/waiting-for-a-visa/how-long-it-takes-to-process-your-visa-application https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-processing-times https://www.gov.uk/guidance/visa-processing-times-applications-outside-the-uk https://www.canada.ca/en/immigration-refugees-citizenship/services/application/check-processing-times.html

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Tourism Recommendations for increasing tourism 1.Expand Targeted Marketing in Emerging Markets: Increase digital campaigns in India, focusing on ecotourism and experiences unique to New Zealand, such as adventure sports, and Māori cultural tours, that will attract a younger demographic of tourists.

2.Streamline Visitor Visa Procedures: Consider issuing a tourist visa on arrival, if the visitor already has a US, UK or Australian visa and has therefore undergone an involved vetting procedure. This approach is being used successfully by countries such as Singapore to attract Indian tourists.

3.Facilitate More Direct Connectivity: Work with government to introduce direct flights that eliminate the need for transit visas via Australia and the disadvantage faced by tourists from secondary Indian cities who face multiple layovers enroute to New Zealand, which increases their time and cost of travel considerably.

4.Support Local Businesses and Māori Enterprises: Provide funding and incentives for local businesses, particularly those that promote Māori culture and locally sourced products, thereby enhancing the authenticity of the visitor experience, which Indian tourists clearly value.

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Services Sector Background In the context of this report, the ‘services sector’ includes all services exported to India from New Zealand, apart from tourism and education services (which are addressed in separate sections of this report).

Key takeaways from this section Services imported to New Zealand from India far outweigh the services New Zealanders export to India. Beyond tourism and education, New Zealand exports few services to India.

Nevertheless, there is a huge services market in India – led by large scale infrastructure projects, often structured as joint ventures with foreign firms.

Services trade demands many of the same considerations as trade in goods.

NZ $ MILLION

Trade situation today Our exports of services to India, beyond tourism and education, have, for many years, been very low in comparison with the services that we import from India. An obvious case is in Information Services, where the gap between exports and imports during 2024 was over NZ$45M.

Figure 6.1 New Zealand Trade with India in telecommunications, computer, and information services Source: https://statisticsnz.shinyapps.io/trade_dashboard/

Not including tourism and education, our total services exports to India in 2024 was ~NZ$47M. Of that total, over NZ$40M was generated by the provision of government services – substantially to embassies and consulates inside New Zealand.

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Services Sector Non-travel services exported to India – Year-ending September 2024

Telecommunications, computer, NZ$1.22M and information services

NZ$40.09M

Government Services

NZ$7.35M

Other Business Services

Figure 6.2 New Zealand non-travel services exported to India – year-ending September 2024 Source: https://statisticsnz.shinyapps.io/trade_dashboard/

The modest ‘other business services’ total of NZ$7.35M includes a mixture of consulting services that do not fit neatly into other categories.

It is worth noting that in 2024 there were no exports at all of insurance and pension services, financial services, and construction services.

Although New Zealand has had limited success, there are many examples of foreign companies collaborating with India to deliver services engagements, including: Delhi metro rail project: DYWIDAG (Germany), Samsung (South Korea), and Shimizu (Japan) played crucial roles in constructing underground sections.

Solar and wind energy: Sumitomo Corporation (Japan) and AMPIN Energy (India) are collaborating to build renewable energy project in India.

Wind power: Siemens Gamesa (Germany/Spain) supplied and installed wind turbines for one of India’s largest wind power projects in Rajasthan.

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Services Sector Trade potential To give an indication of the enormous size of the Indian Services market, India’s total import of services in

Services Trade During December 2024 Exports

December 2024 alone was US$17.5B, up from US$15.6B the previous December1.

35

30

Total services imported in the 2023-2024 financial year was US$178B, up from US$126B in the 2018-2019 financial year.

25

USD BILLION

Given India’s growth trajectory, the services opportunities are vast and span many industries, for example:

Imports

20

15

10

Technology services India, driven by rapid growth and the government’s ‘Digital India’ campaign, is experiencing a surge in digitalisation, requiring services in: Cybersecurity solutions Cloud computing services AI/Machine Learning solutions 5G technology implementation Digital transformation services Financial technology services India is fast becoming an economic and financial powerhouse, with attendant need for: Digital payment solutions Blockchain technology Investment platforms Insurtech solutions Wealth management technology

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5

0

December 2023

December 2024

Figure 6.3 Services imported by India – December 20232024 Source: https://www.commerce.gov.in/tradestatistics/latest-trade-figures/

Services Sector Healthcare technology services As an increasing affluent country, with a growing middle-class, amongst the Indian people is a growing healthcare awareness, and an increase in healthcare spending, promoting a need for: Telemedicine platforms Healthcare AI Medical equipment Digital health solutions Biotechnology Education technology India has a large, young, increasing affluent, and increasing urban population, that demands quality education. In addition to our education services offered in New Zealand, we should consider: Online learning platforms Professional certification programs Corporate training Skills development Clean energy/sustainability At the national and state government levels there is a push to move to clean energy sources, this, coupled with a growing environmental awareness amongst India’s citizens is driving a need for: Renewable energy solutions Energy efficiency technology Green building solutions Environmental consulting Waste management services Note that India’s government offers tax breaks, low-interest loans, and public-private partnerships (PPPs) to accelerate clean energy projects. While the International Solar Alliance (ISA) – of which India and New Zealand are members - encourages global partnerships for India’s solar expansion.

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Services Sector Of course, many of the same considerations for market entry of goods exports apply to services exports: 1. Identify opportunities through pragmatic market research: There will always be a need to properly identify opportunities in the Indian market – at least down to a state level, and to realistically assess the quality and value of New Zealand services providers, relative to other options available to the Indian market. The Indian diaspora serves as a reminder that there are many talented service providers coming out of India; within India there remain many talented service providers; and, of course, the rest of the world is available to Indian importers, hence New Zealanders need to be realistic about what they can provide over and above their competition.

2. Price sensitivity: The Indian service market is intensely competitive, with both domestic and international players vying for market share. Price becomes a key differentiator when other factors like quality and features are perceived as relatively similar across offerings. Nevertheless, service providers need to demonstrate that the service's value proposition justifies the price, even if it's higher than competitors. This means highlighting unique features and capabilities, superior quality, and long-term benefits.

3. Local partnerships, joint ventures, and market presence: Export of services to India requires New Zealand organisations to develop a presence in India, either through establishing local partnerships with vendors in India, or through establishing subsidiaries. Establishing relationships with government agencies (state and national) is also important. In all cases, patience and perseverance is required, as are strong and lasting relationships that work on a quid pro quo basis. It should be noted that India encourages foreign partnerships through joint ventures, offering tax benefits, easier market access, and faster regulatory approvals.

4. Market adaptation: As shown in the State Perspectives section, India is a diverse and complex market, and demands a deep understanding of the cultural, regulatory, technological, and competitive landscape. A well-defined adaptation strategy, incorporating local expertise, knowledge, and continuous monitoring and improvement, is crucial for navigating this constantly changing market to achieve consistent growth.

Finally, some business leaders we spoke with advocated using services trade purely as a lever to gain concessions on the export of goods to India. In such a model, making the path of entry easier for Indian services vendors looking to export services to New Zealand, in return for increased access for our goods to Indian markets. It’s an intriguing idea, and one that takes a more macro (and cross-sector) view of the trade relationship with India.

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Services Sector Recommendations for increasing trade 1. Carry out market research and understanding: Conduct thorough market research to understand India's diverse consumer base and regional preferences. This includes identifying product demand, cultural nuances, and local competition. Be prepared to tailor your service offerings for the specific area of India that you are targeting.

2. Develop service offerings that work for India: Create tailored service offerings that are price sensitive, adaptable, effective, and will deliver to a high quality expected by any discerning client. As with goods, successful service plays with India must be built around an expectation of high quality, reliability, and trust.

3. Build strong partnerships and relationships: Establish strong ties with local distributors, government agencies, and partners who understand the Indian market. These partnerships can facilitate easier market entry and help navigate regulatory and logistical challenges. Many service opportunities may be public/private in nature, and large scale, hence the governments of both countries, along with multiple New Zealand companies, may need to collaborate to achieve success.

4. Leverage Government support and relationships: Explore government programs and initiatives in both New Zealand and India that support international trade and investment. New Zealand Trade and Enterprise (NZTE) is a valuable resource, which must continue to ‘step up to the plate’ to provide the vital links with Indian counterparts and agencies.

5. Leverage increased services imports to increase goods exports: Explore the easing of pathways for Indian services vendors operating in New Zealand, in return for concessions on goods exports to India.

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Trade Enablers

Immigration Background: This section explores the subject of immigration from India to New Zealand, and how it can be an important enabler that drives better trade outcomes between the two countries.

Immigration confers numerous benefits on an economy. Immigrants bring a diverse set of skills that can complement the local workforce, address skill shortages, encourage entrepreneurship, and help create links with their home country - spurring trade. In the case of New Zealand, an older - but relevant - study by Nana, Sanderson, Kel and Hodgson (2009) estimated an economic model to study the impacts of immigration on the New Zealand economy. It found that immigration boosts the competitiveness of the New Zealand economy, and in turn increases exports and government revenue. A well-known report44 published by the Waitakere Indian Association estimated that people of Indian origin contributed more than NZ$10B in 2019 to New Zealand’s GDP. In addition, a robust immigration system can ensure that New Zealand benefits from both tourism and student arrivals for higher education, both of which contribute to New Zealand’s largest export sectors.

Key takeaways from this section Given India’s size and the value that Indian immigrants bring to New Zealand, there remains considerable potential for growth in numbers of Indian immigrants to New Zealand.

Though New Zealand’s immigration system has its strengths relative to other countries targeted by Indian migrants, it has weaknesses too that makes New Zealand a much less attractive destination for Indian migrants.

A robust and fair immigration system can ensure that New Zealand maximises the benefits that Indian migrants bring to New Zealand’s economy.

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Immigration The immigration situation today: India’s growing middle class and youthful population are increasingly seeking better living standards abroad. By 2030, India’s working-age population will peak at 68.9%, further driving the demand for international exposure and business travel45. India, as a country with high emigration has the potential to be a major source of migrants to New Zealand.

Figure 7.1 shows migrant arrivals to NZ from India and key comparison countries.

Figure 7.2 shows total overseas migrant arrivals into Australia from top arrival countries.

Figure 7.1: Migrant arrivals into New Zealand by nationality https://mbienz.shinyapps.io/migrati on_data_explorer/

Figure 7.2: Overseas migrant arrivals into Australia, Source: Australian Bureau of Statistics

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Immigration Figure 7.2 reveals that in the case of Australia, Indian migrant arrivals outpaced arrivals from China as early as in 2018. The number of Indian migrants to Australia has bounced back postpandemic.

On the contrary, although there has been a post-pandemic bounce-back, Indian migrant arrivals into New Zealand have remained well below arrivals from countries such as the UK and China both before and after the pandemic.

Figure 7.3, (a) – (c) shows migrant arrivals from India and comparison countries in three categories – work, student and residence. In the work category from Figure 7.3(a), Indian migrant arrivals show solid growth in the post pandemic period, outstripping arrivals from China, the UK and Canada. In education, Indian migrant arrivals follow the same pattern over time as those from other countries, but they remain below arrivals from China. Similarly, under the residence category, Indian migrant arrivals are close to the UK in magnitude, but well below China.

7.3(A) WORK

7.3(B) STUDENTS

7.3(C) RESIDENCE

Figure 7.3a-c: Migrant arrivals by nationality and category of visa https://mbienz.shinyapps.io/migration_data_e xplorer/

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Immigration The overall picture that emerges is that of significant growth potential for migration from India across all categories of visas given India’s population size (which is comparable to China), and the success of immigrant-receiving countries such as Australia in attracting Indian migrants.

The next section discusses strengths and weaknesses of the New Zealand immigration system, acknowledging the significance of designing an immigration strategy that will attract migrant numbers from a growing source market such as India.

Strengths Transparency: New Zealand’s immigration system is viewed among potential migrants and immigration agents in India as a transparent system. Applicants and agents can contact Immigration New Zealand’s customer service to obtain relevant information on visas and reasons for visa rejections. Such access to Immigration customer service is perceived as rare (relative to competitor countries) and extremely valuable.

Visa processing times: Except in a few categories, visa processing times are largely considered reasonable by stakeholders. Table 7.1 provides an overview of visa processing times for key visa categories for New Zealand and close comparison countries of Australia, the UK and Canada. In the Table, cells are left blank when there is no equivalent visa category for the country in question.New Zealand compares favourably with other countries. Skilled migrant visas (residence class visas) take five months in New Zealand as opposed to seven months in Australia. The route to permanent residence in countries like the USA and UK are wellknown to be onerous, and New Zealand distinguishes itself as a country with a functioning route to permanent residence for Indian migrants.

Visitor and student visas for New Zealand can be obtained in similar timeframes as for the UK and Canada, and certainly quicker than for Canada in the case of visitor visas. Australia is the fastest country to issue visitor visas, with a one-day turnaround. Student visas in New Zealand are processed in four weeks, much faster than Australia’s 61 days. Overall, the data line up with migrant perceptions of organisational efficiency.

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Immigration

Table 7.1 Visa processing times for Indian applicants, by visa type – selected countries (1) Universities; (2) Accredited Employer Work Visa (AEWV) Source: https://www.immigration.govt.nz/new-zealand-visas/waiting-for-a-visa/how-long-ittakes-to-process-your-visa-application https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-processing-times https://www.gov.uk/guidance/visa-processing-times-applications-outside-the-uk https://www.canada.ca/en/immigration-refugees-citizenship/services/application/checkprocessing-times.html Post-study visa rights: New Zealand’s post-study visa rights are seen as generous. This visa allows students that have studied for a certain time-period in New Zealand to work for up to 3 years. For potential Indian students in New Zealand, this visa provides an opportunity to obtain relevant work experience in New Zealand and is also a pathway to residence. The New Zealand economy gains, since the immigrants’ skills are retained domestically and harnessed.

Weaknesses High visa rejection rates for student visas: There is widespread concern among stakeholders in India on high student visa rejection rates. New Zealand’s rejection rate for student visas for India rose from 28% in 2022 to 40% in 2023, a 30% increase. Table 7.2 shows rejection rates for student visa applications from China, the UK and Canada. These rejection rates are not only negligible but have remained roughly stable between 2022 and 2023. The visa rejection rate for Indian student applicants thus stands out as not only high but also increasing (and possibly discriminatory).

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Table 7.2 New Zealand visa rejection rates – 2022-2023 Source: New Zealand Immigration, https://www.immigration.govt.nz/assist-migrants-andstudents/assist-students/internationalmarkets/student-visa-decision-data

Trade Enablers

Immigration An additional issue for Indian student visa applicants is that rejection rates appear to differ arbitrarily across case officers and across consulates in India, with the result that there is significant uncertainty among students regarding whether their visa will be approved. A predominant reason for rejection is the inability of Immigration New Zealand to verify student loans taken by applicants. Previous instances of fraudulent activity by some immigration agents who falsified loan documents in conjunction with banks has led to India being classified as a high-risk country in this domain, leading to a universally stringent application of rules to assess visa applications.

This strategy is not only a blunt instrument that penalises genuine student visa applications to tackle a few fraudulent ones, but also disadvantages students that may not have access to the formal credit market and cannot produce bank loan letters because they source funds informally.

Besides, alternate education destination countries for Indians, such as the UK, Canada, and the USA, do not require such rigorous verification of loan documents, which suggests that they do not perceive this as an issue significant enough to reject visa applications.

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Trade Enablers

Immigration Uncertainty in immigration policy and settings: Given the economic significance of immigration, immigration policy is most effective when it is conceptualised and planned over the long-term - in line with the strategic vision for New Zealand’s growth and societal aspirations. However, New Zealand’s immigration policy vis-à-vis India has often changed dramatically in the face of current events and geo-political trends.Hence it is viewed as a reactive, rather than a proactive, policy.

News reports on fraudulent activity or exploitation of immigrants in New Zealand, and subsequent negative attention from politicians and the media are all associated with greater rejections of visa applications in the immediate aftermath.This volatility in policy and visa operations generates uncertainty in the minds of potential migrants, which is bound to negatively impact New Zealand’s image as an attractive migration destination in an increasingly competitive global environment.

English language certification: Though English is the language of instruction in several Indian education institutions, many Indian students are required to provide proof of English language proficiency by taking the IELTS or TOEFL English language proficiency tests, neither of which are administered by New Zealand. This ads to the cost of obtaining a visa for Indian students, while not generating revenue for New Zealand because the tests are not administered by a New Zealand institution. Besides, the tests are not tailored to language requirements in New Zealand, given they are designed for the British and US immigration systems.

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Immigration Recommendations for improvements in the immigration system 1. Develop an effective strategy in conjunction with educational institutions to efficiently assess and verify the financial documents of potential students applying for visas. It is in the interest of educational institutions to undertake due diligence on the ability of students to pay their fees, and if this is ensured, there may be little reason for Immigration New Zealand to intervene.

2. Focus on a long-term immigration and visa strategy that works in New Zealand’s interest but does not impose an unnecessarily heavy burden on visa applicants. This is as opposed to operating on a strategy that is reactive to geopolitical tensions or news about isolated negative incidents relating to immigration from India. Given that Indian students are being courted across the world by competitor countries such as the US, the UK and Canada, it behooves Immigration New Zealand to envisage and operationalise a streamlined strategy to facilitate Indian immigration into New Zealand.

3. Consider developing a domestic version of the IELTS/TOEFL English Proficiency test. Customise it to the New Zealand experience and exercise greater control on testing.

4. Coordinate student visas, post-study work visas and the residence visas, so that there is a simple pathway for migrants into New Zealand to obtain residency. This will allow potential migrants to look forward to a life in New Zealand, think of New Zealand as their country and position themselves to contribute meaningfully to New Zealand’s economy and society.

International evidence46 suggests that immigrants generate links to their home countries, which allows businesses to increase trade with these markets. By expanding access to migrants from India, New Zealand can facilitate trade with one of the world’s fastest growing markets, with solid prospects for job growth and economic development for New Zealanders.

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Trade Enablers

Sports Diplomacy Background Sport has a unique power to transcend cultural, geographic, and political boundaries. As New Zealand seeks stronger ties with India—politically, economically, and socially—sports diplomacy is emerging as a potential way to help strengthen those ties. Drawing from insights shared by sports administrators and leaders (notably those who have pioneered “sport diplomacy” strategies), as well as New Zealand’s own historical sports relationships with India, this section argues that the use of sporting connections is an underutilized means of fostering enduring partnerships.

Key takeaways from this section: New Zealand should include celebrated athletes and coaches in trade missions and diplomatic visits so their star power opens doors in India faster than formal channels can.

The 2026 hockey centennial can be expanded into a year‑long series of business forums, tourism campaigns, and cultural events that yield benefits long after the anniversary ends.

A dedicated sports‑diplomacy taskforce, streamlined athlete visas, and coordinated funding across MFAT, Sport NZ, NZTE, and Tourism NZ will turn isolated sporting successes into sustained bilateral gains.

Historical foundations: Before Cricket there was Hockey While cricket captures the attention of millions of viewers in both countries whenever India and New Zealand cross paths on the field, it is hockey that has a longer official history linking the two nations. In 1926, the Indian Army Hockey Team toured New Zealand and played a series of ‘Test matches’—an event often cited as the beginning of formal sporting ties between the two countries. The centennial celebrations in 2026 present an ideal moment to showcase hockey’s legacy, organize commemorative tournaments or exhibition matches, and spotlight how longstanding sporting traditions can energize broader diplomatic and trade conversations.

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Sports Diplomacy Beyond the familiar: Emerging sporting connections And while cricket and hockey dominate the India-New Zealand sporting landscape, other sports have also come to bind New Zealand and India in meaningful ways. India’s rugby scene, for instance, is steadily growing in states such as Maharashtra and West Bengal, while kabaddi teams in New Zealand have risen in popularity, especially among the Indian diaspora. Badminton, too, has gained significant momentum: Indian communities in Auckland and Wellington regularly organize tournaments, and some of the top local players have gone on to represent New Zealand.

These expanding areas of sporting exchange illustrate the depth and diversity of shared interests —far more than just cricket.

Soft power and diplomacy Examples from around the world highlight how sport can act as “soft power” (i.e., a country’s ability to influence and enhance its global reputation). The United States’ “ping-pong diplomacy” with China in the early 1970s is a well-known case, and Australia’s recent multimillion-dollar efforts to support rugby league in the Pacific demonstrate how governments leverage popular sports to build influence and goodwill. In the India–New Zealand context, public figures in track suits can sometimes open more doors than conventional diplomats in suits. As one leading sportdiplomacy advocate notes, a well-known athlete may be only one phone call away from highlevel political access that traditional envoys would struggle to secure.

Harnessing diaspora and dual representation The Indian diaspora in New Zealand is among the country’s largest and fastest-growing communities, recently surpassing 270,000 people according to Stats NZ estimates. This group brings with it a passion for sports—ranging from cricket and badminton to traditional games like kabaddi—and often organizes community tournaments that strengthen local bonds. In many cases, athletes with Indian heritage - such as Rachin Ravindra and Ajaz Patel - have represented New Zealand47 at international events in India itself, demonstrating how diaspora communities can be a bridge to deeper India–New Zealand sporting collaborations. Supporting these athletes, as well as partnering with diaspora-led sports associations, can amplify the scope of bilateral engagement.

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Sports Diplomacy Opportunities for businesses and government Sports diplomacy is not just a government concern; businesses can also benefit. New Zealand exporters have long appreciated that a famous national cricketer or rugby icon can help capture a stake in India’s massive market.

Companies keen to expand into India—be it in consumer goods, technology, or education—could collaborate with leading Kiwi or Indian sporting personalities, forging brand partnerships that resonate powerfully with Indian audiences.

Government Engagement: Policies that facilitate sports exchanges—simplified athlete visas, subsidies for sporting delegations—can prove transformational.

Investing in events to mark 100 years of hockey ties, for example, can generate publicity that underpins broader diplomatic outreach.

Corporate Engagement: Private firms sponsoring local sports clinics or endorsing grassroots matches can create enduring goodwill. High-profile ambassadors from cricket, hockey, or even emerging sports like kabaddi capture public imagination and serve as brand multipliers.

Celebrating 2026 and beyond With the centennial of India–New Zealand hockey relations in 2026, an unparalleled moment arises to celebrate the past while forging new avenues for the future. Joint sports festivals, specialised trade missions in tandem with sports tours, and collaborative coaching exchanges all offer tangible ways to use sport as a rallying point. Done properly, these commemorations can spark conversations that extend far beyond stadiums—touching on tourism, education, investment, and cultural collaboration.

Sport, when deliberately leveraged as a form of diplomacy, has the capacity to unify diverse stakeholders, from grassroots communities to high-ranking government officials. Cricket may captivate huge audiences, but the hockey centenary in 2026, along with emerging ventures in rugby, kabaddi, and badminton, signal a golden opportunity to enrich and expand India–New Zealand ties. Policy-makers, business leaders, and sports bodies should embrace these connections and harness sporting personalities more systematically. In doing so, they will find that sport diplomacy is not just an engaging spectacle, but a strategic tool to bolster bilateral relations —on the field, in trade, and in the hearts of both nations.

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Sports Diplomacy Recommendations for improvements in sports diplomacy 1. Form a dedicated sports diplomacy taskforce: Create a specialised unit within government agencies (e.g., MFAT or Sport NZ) to develop, coordinate, and oversee sports-focused initiatives with India. This group would liaise with New Zealand sporting bodies, diaspora associations, and relevant Indian counterparts to ensure a cohesive strategy.

2. Streamline sporting exchanges and visas: Simplify visa processes for visiting athletes, coaches, and officials, particularly around major events such as the 2026 hockey centennial. Quick-turnaround protocols would encourage frequent exchanges and foster deeper bilateral relationships.

3. Promote multi-sport engagement: Move beyond cricket and leverage sports like hockey, rugby, kabaddi, and badminton as mutual areas of sporting interest. Government-backed festivals or tournaments —featuring a range of disciplines—can showcase lesser-known sports and highlight New Zealand’s diverse sporting talent.

4. Support diaspora-led initiatives: Collaborate with communitybased clubs and associations to host joint tournaments or training clinics. This not only strengthens ties with the Indian diaspora in New Zealand but also builds a grassroots pipeline for future sporting and cultural programs.

5. Leverage sports personalities in trade missions: Include prominent athletes and coaches in delegations to India and encourage businesses to partner with them as brand ambassadors. This tactic can amplify the impact of trade talks and product promotions, using high-profile sporting figures to capture public imagination.

6. Invest in the 2026 Hockey centenary: Coordinate celebratory matches, joint workshops, and commemorative events marking 100 years of hockey ties between India and New Zealand. Link the festivities to broader economic and tourism objectives, creating opportunities for business networking and cultural exchange.

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State Perspectives Key takeaways from this section India is a massive country, with a great diversity that cannot be ignored.

To better understand the Indian market and the possibilities it offers to traders, one needs to look at India from a state, if not a city, perspective.

Each state is unique and offers its own opportunities, challenges, and assistance to prospective traders.

This section focuses on eight Indian states that are amongst the largest and fastest growing.

Introduction This section provides an overview of some of the key Indian states that we believe New Zealand exporters should be focusing on.

By all measures, India is a massive country, with the largest population on Earth, and a scarcely believable diversity in terms of geography, culture, industry, and people.

India is comprised of 28 states and 8 union territories. Indian states are self-governing and have their own state governments, while most union territories are directly governed by the central government - officially known as the Union Government.

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STATES & UNION TERRITORIES

State Perspectives Despite Indian States being self-governing, states are often heavily dictated influenced by the laws and initiatives of the Union Government – ‘Make in India’ and ‘Invest India’ are two such initiatives.

We have chosen to focus on eight specific Indian States. These are amongst the largest in terms of GDP and fastest growing. They provide a good cross-section view of the Indian market – illustrating the diverse range of opportunities India presents. While the lists of opportunities provided may not definitive, they provide prospective New Zealand exporters of goods and services with export ideas specific to the state.

Our focus states are:

Maharashtra | Tamil Nadu | Uttar Pradesh | Karnataka | Gujarat | Rajasthan | Telangana | Kerala

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State Perspectives

MAHARASHTRA

Situated in the western region of the country, Maharashtra borders Gujarat, Madhya Pradesh, Chhattisgarh, Telangana, Karnataka, Goa and the Union Territory of Dadra and Nagar Haveli. West of the state is the Arabian Sea. The state capital is Mumbai - India’s largest city and the home of India’s main stock exchanges, capital market, and commodity exchanges. Mumbai is known as the trade and commerce capital of India.

Maharashtra is emerging as a key hub for IT, electronics, and business outsourcing industries.

It has seven domestic and four international airports (of which Mumbai Airport is one of India’s busiest). It also has 48 minor and two principal ports (of which Jawaharlal Nehru Port is India’s largest in terms of container traffic).

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State Perspectives Maharashtra

Facts about Maharashtra Land area: 307,000 km2 Population: 125 million Literacy rate: 82.3% Median age: 26 years (2011 Census) Population living in urban areas: 45% (2011 Census) Major cities: Mumbai, Pune, Nagpur, Thane, Nasik, Solapur, Kolhapur, Sangli, Aurangabad, Amravati and Ratnagiri Main languages spoken: Marathi (official), Konkani, Hindi, English Main religions: Hinduism, Islam, Buddhism Economic indicators (2024-25) Total GDP: US$513B GDP per capita: US$3,383 GDP growth rate year on year: 13.5% GDP as a percentage of India’s total GDP: 13.24% 88

State Perspectives Maharashtra Economic snapshot (2021-22 vs 2011-12) In 2021-22, the tertiary sector contributed 59% to the state’s GSVA (gross state value add) at current prices, followed by the secondary sector with a contribution of 25%.

The tertiary sector increased at a CAGR (compound annual growth rate) of 10.83% between 2011-12 and 2021-22. Growth was driven by trade, hotels, real estate, finance, insurance, transport, communications and other services.

The secondary sector increased at a CAGR of 5.46% between 2011-12 and 2021-22. Growth in the secondary sector was driven by growth in Figure 8.1 Percentage Distribution of GSVA (Maharashtra state) the manufacturing, construction and electricity, Source: India Brand Equity Foundation gas and water supply industries. The primary sector expanded at a CAGR of 7.8% between 2011-12 and 2021-22. Agriculture is the major contributor to the growth of the primary sector, followed by forestry and fishing.

Opportunities and assistance for exporters Maharashtra, as a state with a significant contribution to the national GDP, attracts various imports required to fuel its diverse sectors.

The manufacturing sector, which includes automotive, electronics, and textiles, requires a steady supply of machinery, parts, and raw materials.

The chemical and pharmaceutical industries import specialised chemicals and compounds essential for production processes.

Technological advancement in Maharashtra is supported by imports of high-tech gadgets, software, and IT services.

The state's major cities, drive the demand for consumer electronics, luxury goods, and food products.

The financial services sector in Maharashtra is bolstered by international consulting and financial services, ensuring the state remains competitive on a global scale.

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State Perspectives Maharashtra In addition, Maharashtra has implemented several initiatives to assist importers of goods and services, including: The Maharashtra Industrial Development Corporation1 (MIDC) offers tailored support to importers, including infrastructure development, industrial estate management, and single-window clearances for various permits and licenses. Its focus is on ensuring that businesses have access to the necessary resources and facilities to thrive.

Single Window Clearance System2 is designed to streamline obtaining necessary approvals and permits for businesses, including importers. This system allows businesses to apply for multiple clearances through a single online platform, reducing the time and effort required to navigate through various government departments. This initiative is part of the state's effort to enhance the ease of doing business by minimising bureaucratic hurdles and accelerating project implementation. Most of the states mentioned in this section have some form of a single window clearance system.

Maharashtra Export Promotion Council3: While primarily focused on exports, this council also provides valuable insights and assistance to importers regarding market trends and trade facilitation.

Special Economic Zones4 in Maharashtra provide importers with a competitive edge through fiscal incentives, duty-free imports, and a conducive business environment.

Lastly, the state government collaborates with trade bodies and chambers of commerce5 to organise trade fairs, seminars, and workshops, which help importers connect with potential partners and stay informed about market trends and regulatory changes.

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State Perspectives

UTTAR PRADESH

Located in Northern India, Uttar Pradesh borders with Rajasthan, Haryana, Himachal Pradesh and Delhi, Uttarakhand, Bihar, Madhya Pradesh, Chhattisgarh, and Jharkhand. To the north it shares a border with the country of Nepal.

The state capital is Lucknow, a multicultural city known as a North Indian cultural and artistic hub. It continues to be an important centre of governance, administration, education, commerce, aerospace, finance, pharmaceuticals, and information technology.

Uttar Pradesh’s economy is dominated by the services industry, and it has emerged as a key hub for IT industries, including software, business process outsourcing (BPO), and electronics. The state has also become a hub for the semiconductor industry with several major players having their offices and R&D centres within the state.

Uttar Pradesh has six airports, as well as 48 national highways, and rail links to all major cities.

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State Perspectives Uttar Pradesh

Facts about Uttar Pradesh Land area: 241,900 km2 Population: 231 million Literacy rate: 67.7% Median age: 20 years (2011 Census) Population living in urban areas: 23% (2011 Census) Major cities: Lucknow, Noida, Agra, Ghaziabad, Allahabad, Varanasi, Kanpur, Meerut and Saharanpur Main languages spoken: Hindi (official), Urdu Main religions: Hinduism, Islam

Economic indicators (2024-25) Total GDP: US$290B GDP per capita: US$1,152 GDP growth rate y/y: 5.8% GDP as a percentage of India’s total GDP: 8% 92

State Perspectives Uttar Pradesh Economic snapshot (2021-22 vs 2011-12) In 2022-23, the tertiary sector contributed 45% to Uttar Pradesh’s GSVA (gross state value add), followed by the secondary sector (29%), and primary sector (26%).

The tertiary sector grew at a CAGR of 9.83% from 2011-12 to 2022-23. The growth was driven by trade, hotels, real estate, finance, insurance, transport, communications and other services.

The secondary sector expanded at a CAGR of 11.39% between 2011-12 and 2022-23. This was driven by manufacturing, construction, electricity and gas and water supply.

The primary sector expanded at a CAGR of 10.58% between 2011- 12 and 2022-23. The growth was driven by agriculture and forestry.

Figure 8.2 Percentage Distribution of GSVA (Uttar Pradesh state) Source: India Brand Equity Foundation

Opportunities and assistance for exporters Uttar Pradesh has a diverse import portfolio, reflecting its dynamic economy and growing consumer base.

The state imports a significant amount of electronics, which for both consumer use and industrial applications.

Machinery imports support its extensive manufacturing sector Chemicals are vital for industries like pharmaceuticals, textiles, and agriculture.

Textile imports complement local production and cater to fashion demands.

Agricultural products are imported to supplement local food production and consumption requirements.

In terms of services, Uttar Pradesh imports expertise and solutions in IT, which support its growing tech industry, as well as financial and educational services that contribute to its economic and social development.

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State Perspectives Uttar Pradesh In addition, initiatives to assist importers of goods and services include: Like many other states, Uttar Pradesh has taken several steps to streamline customs processing6 to facilitate smoother import and export activities. This includes the use of electronic data interchange (EDI) and other technology-driven solutions that enhance transparency and efficiency.

The state has established dedicated customs facilitation centres7 to assist businesses with compliance and documentation requirements. These centres also provide guidance and support to importers to help them navigate the complexities of customs regulations.

There are various State government financial incentives structured to attract and support businesses, with specific schemes offering tax benefits and subsidies based on the type and volume of goods imported. These incentives are part of the state's policies [LINK: https://invest.up.gov.in/policies/] to increase trade volume and economic activity.

Similar to many other Indian states, Uttar Pradesh has set up a number of Special Economic Zones8 (SEZs).

The Associated Chambers of Commerce and Industry of U.P.9 looks to bring together the business ecosystem and provides a good entry point for exporters looking to do business in Uttar Pradesh.

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State Perspectives

TAMIL NADU

Tamil Nadu is the southernmost state of India. It borders Kerela, Karnataka, and Andhra Pradesh. East of the state is the Bay of Bengal and to the south is the Indian Ocean.

Tamil Nadu is one of the most industrialised states in India. It ranks first in terms of the number of factories and number of industrial workers. The state is a key exporter of Engineering and Electronic goods.

Tamil Nadu has three major ports, 15 minor ports, and seven airports, as well as a well-developed road and rail network.

The state capital is Chennai. It is known as India’s health capital and is a major center for medical tourism. It also known for its thriving automobile industry.

Tamil Nadu is one of the most industrialised states in India.

It ranks first in terms of the number of factories and number of industrial workers and the state is a key exporter of engineering and electronic goods.

Tamil Nadu has three major ports, 15 minor ports, and seven airports, as well as a well-developed road and rail network.

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State Perspectives Tamil Nadu

Facts about Tamil Nadu Land area: 130,000 km2 Population: 84 million Literacy rate: 80.3% Median age: 29 years (2011 Census) Population living in urban areas: 48% (2011 Census) Major cities: Chennai, Coimbatore, Madurai, Thiruchirappalli, Salem, Tirunelveli and Erode Main languages spoken: Tamil (official), English Main religions: Hinduism, Christianity, Islam

Economic indicators (2024-25) Total GDP: US$346B GDP per capita: US$4,205 GDP growth rate y/y: 16% GDP as a percentage of India’s total GDP: 8.8%

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State Perspectives Tamil Nadu Economic snapshot (2021-22 vs 2011-12) In 2022-23, the tertiary sector contributed 53.05% to the state’s GSVA (gross state value add), followed by the secondary sector at 34.10%.

The tertiary sector increased at a CAGR (compound annual growth rate) of 11.47% between 2011-12 and 2022-23, driven by trade, air transport, railways, hotels, real estate, finance, communications and other services.

The secondary sector increased at a CAGR of 10.31% in this period, driven by the utility and manufacturing sectors.

The primary sector grew at a CAGR of 10.74% between 2011-12 and 2022-23.

Figure 8.3 Percentage Distribution of GSVA (Tamil Nadu state) Source: India Brand Equity Foundation

Opportunities and assistance for exporters Tamil Nadu’s industrial landscape is diverse, with significant contributions from sectors such as automotive, textiles, electronics, and IT. As a result, Tamil Nadu imports a variety of goods and services to support these industries.

For the automotive sector, imports include specialised machinery, auto components, and raw materials like steel and aluminium.

The textile industry relies on the import of fibres, dyes, and chemicals essential for production.

The thriving electronics and IT sectors import high-tech components, software, and consulting services to stay competitive in global markets.

With a large urban population, there is a steady demand for imported consumer goods, medical equipment, and food products.

Financial services and IT consulting from global markets also play a crucial role in supporting Tamil Nadu's economic activities, ensuring that the state remains a vital hub for business and innovation.

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State Perspectives Tamil Nadu In terms of assistance for businesses looking to export to Tamil Nadu: Guidance Tamil Nadu10 (formerly known as The Tamil Nadu Industrial Guidance and Export Promotion Bureau) plays a significant role in aiding importers by providing comprehensive support tailored to individual business needs. Their services include facilitating connections with international partners, offering insights into global market trends, and assisting with the navigation of complex import regulations. The bureau also hosts trade fairs and business delegations that help importers build networks and explore new opportunities.

Tamil Nadu has Special Economic Zones11 (SEZs) which are strategically located to support logistics and supply chain efficiency, offering benefits such as relaxed customs procedures and fiscal incentives aimed at reducing the cost of doing business.

The Tamil Nadu Chamber of Commerce and Industry12 is one of the largest such chambers in India, organising trade fairs, and encouraging connections and growth in trade.

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State Perspectives

KARNATAKA

Located in southwestern India, Karnataka borders Goa, Kerala, Maharashtra, Telangana, Tamil Nadu, and Andhra Pradesh. To the west is the Arabian Sea. The state capital is Bengaluru. It is known as the ‘Silicon Valley of India’, for its contributions to the country's information technology sector.

Karnataka has vibrant automobile, agricultural, aerospace, textile and garment, biotech, and heavy engineering industries. It is also recognised as the IT hub of India.

Karnataka has one major port, 10 minor ports, and five airports, as well as a well-developed road and rail network.

99

State Perspectives Karnataka

Facts about Karnataka Land area: 192,000 km2 Population: 61 million Literacy rate: 75.4% Median age: 26 years (2011 Census) Population living in urban areas: 39% (2011 Census) Major cities: Bengaluru, Belgaum, Bijapur, HubliDharwad, Kalaburagi, Mangalore, Mysore and Shimoga Main languages spoken: Kannada (official), Urdu, Telugu Main religions: Hinduism, Islam Economic indicators (2023-24) Total GDP: US$337B GDP per capita: US$4,041 GDP growth rate y/y: 10.2% GDP as a percentage of India’s total GDP: 8.4% 100

State Perspectives Karnataka Economic snapshot (2023-24 vs 2015-16) In 2023-24, the tertiary sector contributed 66.72% to the state’s GSDP, followed by the secondary (20.24%) and primary (13.04%) sectors.

At a CAGR of 13.49%, the tertiary sector was the fastest growing among the three sectors between 2015-16 and 2023-24. This was driven by trade, hotels, real estate, finance, insurance, transport, communications, and other services.

The secondary sector increased at a CAGR of 10.95% between 2015-16 and 2023-24. This was driven by manufacturing, construction, electricity, gas, and water supply.

The primary sector rose at a CAGR of 13.54% between 2015-16 and 2023-24.

Figure 8.4 Percentage Distribution of GSVA (Karnataka state) Source: India Brand Equity Foundation

Opportunities and assistance for exporters Karnataka's imports play a crucial role in supporting its thriving sectors, especially technology and manufacturing.

The import of electronics and machinery is vital for maintaining the state's competitive edge in IT and software industries, as well as in manufacturing. These imports allow businesses to access advanced technologies and components necessary for innovation and product development.

Chemicals and petroleum products are imported to fuel Karnataka's industrial activities, particularly in sectors like pharmaceuticals and energy.

The import of textiles and apparel helps meet consumer demand and supports the state's vibrant fashion industry.

Regarding services, importing specialised IT services and consultancy enhances Karnataka's position as a global tech hub, attracting international business and encouraging local growth.

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State Perspectives Karnataka In terms of assistance for businesses looking to export to Karnataka:

Karnataka offers a variety of financial incentives to importers, aimed at encouraging trade and investment in the state. These incentives often include tax rebates and exemptions on import duties for specific goods that are crucial for local industries, such as advanced machinery, technology, and raw materials for manufacturing. Subsidies may be offered to businesses that are importing goods essential for the development of key sectors like IT, electronics, and textiles. An example is the Special Incentives Scheme for the Electronics System Design and Manufacturing (ESDM) Sector, which offers a 20% subsidy on investment in plant and machinery – regardless of whether imported or procured domestically.

Trade promotion organisations in Karnataka (such as the Federation of Karnataka Chambers of Commerce and Industry13)also play a crucial role by providing platforms for networking, facilitating partnerships, and offering market intelligence to help importers capitalise on new opportunities.

Similar to many other Indian states, Karnataka has set up a number of Special Economic Zones14 SEZs.

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State Perspectives

GUJARAT

Located on the western coast of India, Gujarat borders Rajasthan, Maharashtra, and Madhya Pradesh. To the west is the Arabian Sea, and to the north it shares a border with Pakistan.

The state capital is Gandhinagar. The name means ‘Gandhi’s City’ (after Mahatma Gandhi). The city is only 23km north of Gujarat’s largest city - Ahmedabad – and was developed in the 1960s.

Gujarat is one of the most industrialised states in India and is the largest exporter of all Indian states. It is also the leading state in India for the manufacturing of pharmaceutical products.

Gujarat has the longest coastline of any Indian state, and, not surprisingly, has 46 ports, along with 18 domestic airports and one international airport. It also has an extensive road and rail network.

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State Perspectives Gujarat

Facts about Gujarat Land area: 196,000 km2 Population: 73 million Literacy rate: 78.03% Median age: 25 years (2011 Census) Population living in urban areas: 43% (2011 Census) Major cities: Gandhinagar, Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar and Jamnagar Main languages spoken: Gujarati (official), Hindi, English Main religions: Hinduism, Islam Economic indicators (2021-22) Total GDP: US$330B GDP per capita: US$3,308 GDP growth rate y/y: 19.6% GDP as a percentage of India’s total GDP: 8.3% 104

State Perspectives Gujarat Economic snapshot (2022-23 vs 2011-12) In 2022-23, the secondary sector contributed 42.90% to the state’s GSDP, followed by the tertiary (37.3%) and primary (20.09%) sectors.

The tertiary sector increased at a CAGR of 10.52% between 2011-12 and 2022-23. This was driven by trade, hotels, real estate, finance, insurance, transport, communications and other services sectors.

At a CAGR of 11.79%, the secondary sector was the fastest rising sector between 2011-12 and 2022-23. This was driven by expansion in manufacturing, construction, electricity and gas, and water supply industries.

The primary sector increased at a CAGR of 9.72% between 2011-12 and 2022-23.

Figure 8.5 Percentage Distribution of GSVA (Gujarat state) Source: India Brand Equity Foundation

Opportunities and assistance for exporters Gujarat's imports are a significant component of its economy, contributing to various sectors.

Crude oil imports are important as they feed the state's large-scale refineries Machinery and equipment imports are crucial for the expansion and modernization of industries such as automotive, textiles, and chemicals The state imports a variety of electronic goods, which not only satisfy consumer demand but also support manufacturing and assembly operations Imports of specialised IT and engineering services facilitates the enhancement of industrial processes and technological advancements

105

State Perspectives Gujarat In terms of assistance for businesses looking to export to Gujarat: Gujarat's financial incentives such as tax exemptions and subsidies are structured to encourage the importation of essential goods that support industrial advancement. These can be found in the Government of Gujarat’s major policy15 statements.

The state's streamlined customs procedures, facilitated by an Online Single Window system, reduce the time and cost associated with importing, enhancing efficiency for businesses.

Gujarat’s Special Economic Zones (SEZs)16 and logistics parks provide critical infrastructure support, offering importers access to world-class facilities and services.

The Gujarat Chamber of Commerce & Industry 17 works to grow industry and trade within the state, including encouraging bilateral trade and economic co-operation, through access to information and resources, and hosting of foreign delegations.

106

THE RANN OF KUTCH⁠

State Perspectives

RAJASTHAN

Located in northwestern India, Rajasthan is the largest state in India by area. The state shares borders with Gujarat, Haryana, Uttar Pradesh, Punjab, and Madhya Pradesh. To the west it shares a border with Pakistan.

Jaipur is the state capital and its largest city. In addition to its role as the provincial capital, educational, and administrative centre, Jaipur is known for tourism, gemstone cutting, the manufacture of jewellery and luxury textiles, and information technology.

Rajasthan is one of the leading producers of crude oil in India and is known for its agricultural and mineral resources. It is also known as an important trade and commerce centre that takes advantage of the corridor it maintains between northern and western states.

There are seven airports in Rajasthan, including an international airport in Jaipur. Considerable investment is being made into improving roads and rail links with other Indian cities 107

State Perspectives Rajasthan

Facts about Rajasthan Land area: 342,239 km2 Population: 80 million Literacy rate: 66.1% Median age: 22 years (2011 Census) Population living in urban areas: 25% (2011 Census) Major cities: Jaipur, Jodhpur, Kota, Bikaner, Ajmer, Udaipur, Bhilwara Main languages spoken: Hindi (official), English (official), Rajasthani, Marwari Main religions: Hinduism, Islam Economic indicators (2023-24) Total GDP: US$190B GDP per capita: US$2,018 GDP growth rate y/y: 8% GDP as a percentage of India’s total GDP: 5% 108

State Perspectives Rajasthan Economic snapshot (2022-23 vs 2011-12) In between 2011-12 and 2022-23, the tertiary sector has been Rajasthan’s fastest-growing sector – with a CAGR of 12.2% - and was the largest contributor to Rajasthan’s economy in 2022-23, with a 43.74% share in the state’s GSVA. The growth was driven by storage, communication and services related to broadcasting, financial services and public administration.

The secondary sector grew at a 9.28% CAGR in the same period and contributed 23.87% in 2022-23.

The primary sector contributed 32.39% to Rajasthan’s GSVA in 2022-23 and increased at 10.79% CAGR between 2011-12 and 2022-23.

Figure 8.6 Percentage Distribution of GSVA (Rajasthan state) Source: India Brand Equity Foundation

Opportunities and assistance for exporters Rajasthan's imports play a vital role in supporting its industrial and consumer sectors, contributing significantly to the state's economic landscape.

Imports of machinery and equipment are key for the mining and manufacturing industries, enabling modernisation and efficiency improvements.

Electronic goods are imported to satisfy the growing consumer demand and to support the development of the local electronics sector.

Chemicals and pharmaceuticals are vital imports for the growth of the healthcare and chemical industries, ensuring the availability of essential products and medicines.

The importation of textiles and raw materials is key to sustaining Rajasthan's renowned textile and handicraft industries, allowing for a blend of traditional craftsmanship with modern trends.

Specialised IT and consultancy services are imported to enhance business operations, making industries more competitive and innovative.

109

State Perspectives Rajasthan In terms of assistance for businesses looking to export to Rajasthan:

Like other states, Rajasthan offers several specific incentives to encourage imports, targeting various sectors to enhance economic growth. One such incentive recently announced as part of the Rajasthan Investment Promotion Scheme 202418 offers incentives to boost investments in renewable energy, battery energy storage systems and green hydrogen.

A small number of Special Economic Zones19 (SEZs) in the state offer importers tax benefits, streamlined regulatory processes, and high-quality facilities to support their business activities.

The Rajasthan Chamber of Commerce & Industry20 (RCCI) actively seeks to exchange trade inquiries with foreign Chambers to promote bilateral trade. Amongst other initiatives, they have setup a help desk for guidance on export/import topics.

110

State Perspectives

TELANGANA

Located in south-central India, Telangana borders Andhra Pradesh, Maharashtra, Karnataka, and Chhattisgarh.

Hyderabad is the state capital and its largest city. It is a major hub of IT activity (its nickname is ‘Cyberabad’). Around 54% of the state’s GDP comes from the Hyderabad metropolitan area alone.

Like many Indian states, agriculture is the bedrock of the state’s economy, but increasingly services and biotechnology are becoming the major contributors to the economy. Telangana is a mineral-rich state, particularly with significant coal reserves.

Telangana has two airports: Begumpet Airport and Rajiv Gandhi International Airport (RGIA).

111

State Perspectives Telangana

Facts about Telangana Land area: 112,077 km2 Population: 38 million Literacy rate: 72.8% Average age: n/a Population living in urban areas: 39% (2011 Census) Major cities: Hyderabad, Waranga, Karimnagar, Nizamabad, Khammam Main languages spoken: Telugu (official), Urdu (official), English Main religions: Hinduism, Islam Economic indicators (2023-24) Total GDP: US$190B GDP per capita: US$4,567 GDP growth rate y/y: 6.7% GDP as a percentage of India’s total GDP: 5% 112

State Perspectives Telangana

Economic snapshot (2022-23 vs 2011-12) In between 2011-12 and 2022-23, the tertiary sector has been Telangana’s fastest-growing sector – with a CAGR of 14.18% - and was by far the largest contributor to Rajasthan’s economy in 2022-23, with a 62.87% share in the state’s GSVA. This growth is mainly driven by the IT services sector.

The secondary sector grew at a 7.73% CAGR in the same period and contributed 17.34% in 2022-23.

The primary sector contributed 19.79% to Telangana’s GSVA in 2022-23 and increased at 12.51% CAGR between 2011-12 and 2022-23.

Figure 8.7 Percentage Distribution of GSVA (Telangana state) Source: India Brand Equity Foundation

Opportunities and assistance for exporters Telangana's imports play a crucial role in sustaining its economic growth and industrial development.

The import of electronics and machinery supports the state's expanding technology sector.

The pharmaceutical industry's demand for chemicals and active pharmaceutical ingredients (APIs) is met through imports, reinforcing Telangana's reputation as a pharmaceutical hub.

Textile and garment imports help satisfy consumer demand and support the local fashion industry by providing diverse options.

The import of specialised IT, engineering, and consultancy services aids in improving industrial processes and innovation, further cementing Telangana's status as a major tech and business hub in India.

113

State Perspectives Telangana In terms of assistance for businesses looking to export to Telangana: Special Economic Zones21(SEZs) in the state offer importers tax benefits, streamlined regulatory processes, and high-quality facilities to support their business activities.

The Federation of Telangana Chambers of Commerce and Industry22(FTCCI) has been established to promote and protect the interests of trade, commerce and industry in Telangana and supports and actions questions related to trade, commerce industry.

114

State Perspectives

KERALA

Located in southwestern India, Kerala shares borders with Karnataka and Tamil Nadu. To the west is the Lakshadweep Sea. Thiruvananthapuram is the state capital and its largest city.

Much of Kerala’s growth and prosperity is based around tourism. However, manufacturing is growing, particularly in the production of rubber, which is a major contributor to the economy.

Kerala also has the highest literacy rate in the country.

Kerala has four international airports (jointly the most in India), one major port (Cochin) and 17 intermediate and minor ports.

115

State Perspectives Kerala

Facts about Kerala Land area: 38,863 km2 Population: 35 million Literacy rate: 94% Average age: 31 years (2011 Census) Population living in urban areas: 48% (2011 Census) Major cities: Thiruvananthapuram, Kozhikode, Kochi, Kollam Main languages spoken: Malayalam (official), English (official) Main religions: Hinduism, Islam, Christianity Economic indicators (2023-24) Total GDP: US$130B GDP per capita: US$3,547 GDP growth rate y/y: 20.82% GDP as a percentage of India’s total GDP: 4% 116

State Perspectives Kerala Economic snapshot (2022-23 vs 2015-16) In 2022-23, the tertiary sector contributed 64.12% to the state’s GSVA, followed by the secondary sector contributing 25.19%, and primary sector contributing 12.98%.

The tertiary sector increased at a CAGR of 8.23% between 2015-16 and 2022-23. This was driven by storage, transport, financial and real estate.

The secondary sector grew at an average rate of 7.78% between 2015-16 and 2022-23.

This was led by manufacturing, construction, electricity, gas and water supply.

The primary sector expanded at an average rate of 5.18% between 2015-16 and 2022-23, mainly supported by growth across agriculture and mining.

Figure 8.8 Percentage Distribution of GSVA (Kerala state) Source: India Brand Equity Foundation

Opportunities and assistance for exporters Kerala's imports are vital for supporting its economic activities and enhancing the quality of life for its residents.

Electronics and machinery imports are crucial for maintaining technological advancement and supporting the state's growing IT and industrial sectors.

The import of petroleum products is essential for fuelling transportation and industrial activities within Kerala.

Food imports, including pulses and grains, help in meeting the dietary requirements of the population.

On the services front, Kerala imports specialised healthcare services, such as advanced medical equipment and expertise, to improve healthcare delivery.

Educational resources and collaborations with international institutions also play a significant role in upgrading the educational infrastructure and standards in the state.

117

State Perspectives Kerala In terms of assistance for businesses looking to export to Kerala:

Kerala has implemented a single window system23 (KSWIFT) to facilitate the faster clearance of documentation across multiple government departments, Like other states, Kerala offers several specific incentives to encourage imports, targeting various sectors to enhance economic growth. One example is the Incentives for Sustainability and Responsible Industrialisation (part of the Kerala Industrial Policy 202324), which offer reimbursement of expenses related to zero discharge technologies, recycling of e-waste and recycling of wastewater, conducting audits for energy and water conservation, among other initiatives.

Kerala also has Special Economic Zones25 (SEZs) in the state that offer importers tax benefits, streamlined regulatory processes, and high-quality facilities to support their business activities.

Like other states, Kerala has its own chambers of commerce, one of the oldest and most influential is The Cochin Chamber of Commerce & Industry26(CCCI). In addition to helping connect trading partners, they offer access various information sources of relevance to importers.

118

About us About the India New Zealand Business Council The India New Zealand Business Council [INZBC] is the principal India New Zealand trade advocacy and dialogue organisation. It has been operating since 1988, dedicated to the task of building trade relations between India and New Zealand. INZBC works closely across the range of Industry and public sector stakeholder groups both within New Zealand and India.

INZBC is run by Board of elected members, who collectively have years of experience in this sphere and represent the key stakeholders in the advancement of trade and commerce between India and New Zealand. With over 200 members representing a broad cross-section of Goods and Services industries, both exporting and importing, INZBC is well engaged with the mainstay of corporate leaders of New Zealand.

For further information please see following links: http://www.inzbc.org http://www.inzbusinesssummit.com

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About Duco Consultancy Limited Duco Consultancy is a niche management and technology consulting company that currently operates across three continents in the following countries: New Zealand, Australia, Fiji, USA, and India. Duco Consultancy leverages our experienced team of consultants to provide cross-domain management, technology, and business consulting services to our clients, enabling their success. Our approach is business led and technology driven to deliver effective and cost-efficient solutions that truly address the client’s business needs.

Our aim is to partner with our clients to create sustainable business outcomes through worldclass solutions. We pride ourselves in being a thoroughly effective consulting services provider in each market that we operate. We achieve this with a single-minded focus on delivering excellence, truly understanding our clients’ needs, and working with them as a seamless team with responsibility and integrity.

To find out more about us please go to: https://www.ducoconsultancy.com 119

Acknowledgements This document would not have been able to be produced without generous contributions from the following people, many of whom participated in industry 'focus group' sessions that we ran in preparation for the writing of this report: Name

Designation

Organisation

Aleta Chowfin

Director

Marge’ah Ltd

Albear Montocchio

Global Marketing Manager

HamiltonJet

Anatole Bogatski

Chief Executive Officer

AJV Global

Arun Chaudhari

Chief Executive Officer

Taranaki Chamber of Commerce

Arunima Dhingra

Chief Executive Officer

Aims Global Education & Immigration Services

Ben McNally-Burn

International Market Manager (India & Southeast Asia)

Education New Zealand Manapou ki te Ao

Bhumit Patel

Director

Jabreshwar Group T/A ASB Services Limited

Clive Antony

Founding Partner

Antony & Mates

Deepika Jindal

Professional Teaching Fellow

The University of Auckland

Dileep Maddukuri

Director

Hasperbrandlabs

Dr Moses Satralkar

MBA professional and Management Expert

Massey University; BedsRus Auckland

Dr. Ankita Mookherjee

Assistant Professor

University of Calcutta

Dr. Nitin Nagrale

Chief Executive Officer

Quality NZ

Dr. Nitya Prakash

Chief Executive Officer

Quality New Zealand Education Limited

Dr, Vijay Dasari

Director & General Manager

Pristine Biologicals (NZ) Limited

Edwin Paul

Director

Edcorp Consulting Ltd

120

Acknowledgements Name

Designation

Organisation

Edwina Mistry

Director

CreateOps

Frances Duignan

Senior Manager - International Trade

Beef + Lamb NZ

Gary Jones

Trade & Market Access Manager

Mr Apple Ltd

Gayan Perera

General Manager

AJV Global

Geoff Allott

Executive Director

QualityNZ Group

Ghanshyam Sharma

Director

IndoKiwi Finance Limited

Himanshu Rai

Chief Executive Officer

Immigration Advisers New Zealand Ltd

Jai Basrur

Director

CGB Consulting Limited

Jake O'Flaherty

Photographer

Justine Arroll

General Manager Trade Strategy

Fonterra

Kajal Anand

Managing Director

Debron Herbals Pvt Ltd

Kam Esfandi

Regional Business Manager

Draslovka NZ

Karen Morrish

Chief Executive Officer

NZ Apples & Pears Inc.

Kshitij Garg

Managing Director

Estero Education Services

Mano Manoharan

Academic

University of Auckland

Mariana Watson

Founder

Rock Paper Play

Mary Joseph

General Manager - NZ

AJV Global

Matt Hill

Executive Officer / Research Director

Phytos

Mike Keech

Chief Executive Officer

Impact Sponsorship

Munish Sekhri

Founder / LIA

Sekhri Immigration

Pankaj Talwar

Managing Director

AJV Global

121

Acknowledgements Name Pankaj Talwar

Designation Managing Director

Organisation AJV Global

Parmindar Singh

Company Director

Independent

Paul Chalmers

Principal Advisor

Newton College

Pauras Rege

Director

Tiaki Capital

Peter Miskimmin

Sports Diplomacy Manager

Sport New Zealand

Prashant Belwalkar

Managing Director

Nirvana Consultancy Services Ltd

Praveen Gupta

Director

Brandia Consulting

Prince Kumar

Founder and Managing Director

EDEX Academy NZ

Rachel Lynch

Government & Community Affairs Manager

Zespri International

Rachel Simpson

Manager - education, skills and immigration

BusinessNZ

Raj Saini

Director/Owner

Rupex Growtech Ltd

Rikky A Minocha

Consultant

Independent

Ritika Singh

Co-Founder / Head of Partnerships & Marketing

Global Talent Ltd / Aims Global Education & Immigration

Sayeeda Bano

Honorary Fellow, International Trade Specialist

The University of Waikato

Shefali Mehta

Accountant

Neptune Pacific Direct Line

Siddarthan Mohankumar

Proprietor

Farm Fresh Foods

Stephanie Montgomery

Programme Manager Asia International Development

NZ Institute for Plant & Food Research (PFR)

Yashika Chandhok

Lecturer

Auckland University of Technology

122

Acknowledgements Name

Designation

Organisation

Chandan Ohri

Chief Executive Officer

Duco Consultancy Limited

Edward Polaczuk

Senior Consultant

Duco Consultancy Limited

Pravinesh Kant

Creative Team Lead

Duco Consultancy Limited

Name

Designation

Organisation

Abhinaw Sai Erri Pradeep

Professional Teaching Fellow

The University of Auckland

Asha Sundaram

Associate Professir

The University of Auckland

Avishek Mishra

Doctoral Candidate

The University of Auckland

Manō Manōharan

Assistant Dean

The University of Auckland

Partha Roop

Associate Dean

The University of Auckland

Sobhan Chatterjee

Doctoral Candidate

The University of Auckland

Name

Designation

Organisation

Alex Smith

Manager, Research Programme

Asia New Zealand Foundation

Julia Macdonald

Director of Research and Engagement

Asia New Zealand Foundation

Suzannah Jessep

Chief Executive

Asia New Zealand Foundation

We would also like to acknowledge our INZBC board and team, for their support and guidance: Bharat Chawla, Rachel Lynch, Earl Rattray, Jonathan Manuel, Jenny McGregor, Edwin Paul, Carmen Vicelich, Prince Kumar, Jay Changlani, Sunil Kausal, Michael Fox

123

Endnotes 1

https://www.midcindia.org/about-midc/

2

https://maitri.mahaonline.gov.in/PDF/Maharashtra_Single_Window_Policy_2016.pdf

3

https://x.com/mhexport_odop

4

https://doingbusinessinmaharashtra.org/sez.php

5

https://maccia.org.in/

6

https://invest.up.gov.in/nivesh-mitra-single-window-clearance/

7

https://kashi.gov.in/project-details/trade-facilitation-center

8

https://nri.up.gov.in/en/page/sezs-in-uttar-pradesh

9

https://www.asochamup.org/index.php

10 https://investingintamilnadu.com/DIGIGOV/TN-pages/guidance.jsp?pagedisp=static 11

https://mepz.gov.in/

12 https://www.tnchamber.in/ 13 https://www.fkcci.org/ 14 https://www.karnataka.com/industry/sez-in-karnataka/ 15 https://www.gidb.org/acts-policies-policies 16 https://kasez.gov.in/websites-of-sezs-in-gujarat/ 17 https://www.gujaratchamber.org/ 18 https://rising.rajasthan.gov.in/storage/app/public/files/pdf/rips-2024.pdf 19 https://www.rasstudycircle.com/post/special-economic-zones-sezs-in-rajasthan-a-catalyst-for-industrial-growth 20 https://www.rajchamber.com/ 21 https://www.tgiic.telangana.gov.in/showView?div_id=21 22 https://www.ftcci.in/ 23 https://www.ksidc.org/initiatives/online-licenses-kswift/ 24 https://www.ksidc.org/wp-content/uploads/2023/05/IND-POLICY-ENG.pdf 25 https://csez.com/php/sezs.php 26 https://www.cochinchamber.org/ 27

https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName? fileName=Fresh%20Deciduous%20Fruit%20Annual_Wellington_New%20Zealand_NZ2024-0013.pdf

28 https://www.austrade.gov.au/en/how-we-can-help-you/programs-and-services/australia-india-business-exchange 29

India – The Next Frontier for Australian Agricultural https://www.anz.com.au/content/dam/anzcomau/documents/pdf/india-thenextfrontier.pdf

Stats NZ defines a student studying for less than 12 months as a ‘tourist’ and tracks their expenditure, including 30 course fees, living costs, and airfares on resident airlines. Expenditure by students studying for longer than 12 months is not available.

124

Endnotes OECD, International Migration Outlook 2023. Paris: Organisation for Economic Cooperation and Development, 31 2023. [Online]. Available: https://www.oecd-ilibrary.org/social-issues-migration-health/international-migrationoutlook-2023 b0f40584-en 32

V Sivadasan. INDIAN STUDENTS KILLED/DIED IN FOREIGN COUNTRIES01/08/2024 https://sansad.in/getFile/annex/265/AU1191_6gQzeb.pdf?source=pqars

33

New Zealand Vs Australia for International Students: Which is Better? Sumeet Jain (27 August 2024) https://yocket.com/blog/study-in-new-zealand-vs-australia

34 https://www.dfat.gov.au/people-to-people/new-colombo-plan/new-colombo-plan-scholarship-program 35 https://www.nzscholarships.govt.nz/ 36

https://www.otago.ac.nz/international/future-students/subjects-courses/postgraduatestudy/scholarships/global-scholarships

https://leapscholar.com/blog/canada-scholarships-for-indian37 students/#:~:text=Ontario%20Trillium%20Scholarship.%20Ontario%20Trillium%20Scholarship%20is,is%20provinci ally%20funded%20to%20the%20deserving%20candidates.

38 https://www.studywithnewzealand.govt.nz/en/plan-your-studies/visas 39 Sanjay Maurya, Hindustan Times, 12 February, 2025 40

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41

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42 Ernst and Young India, 2023, https://www.ey.com/en_in/insights/india-at-100/reaping-the-demographic-dividend 43

RNZ, “New NZ-China Direct Flights Hailed”, 10 April 2011, https://www.rnz.co.nz/news/national/72539/new-nz-chinadirect-flights-hailed

44 Waitakere Indian Association (2020), ‘Report on Economic Contribution of NZ Indians - $10 Billion And Rising’ 45

Ernst and Young India (2023), https://www.ey.com/en_in/insights/india-at-100/reaping-the-demographicdividend

46 Genç, M. The impact of migration on trade. IZA World of Labor 2014: 82 doi: 10.15185/izawol.82 47 https://en.wikipedia.org/wiki/Category:New_Zealand_sportspeople_of_Indian_descent 48

https://glamadelaide.com.au/australia-launches-howzat-for-a-holiday-campaign-to-attract-indian-touristsduring-cricket-series/

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