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5 Oct 2023

National, Labour clash over trade relations with India

2:17 pm on 5 October 2023
Indian High Commissioner to New Zealand Neeta Bhushan

Indian High Commissioner to New Zealand Neeta Bhushan has hailed the increased top-level engagements between the two countries over the past year. Photo: Supplied

Lawmakers from both sides of the political spectrum sparred over ties with India at the first-ever India Business Summit in Auckland last week.

Todd McClay, National's spokesperson for trade, rued the missed opportunities to improve trade ties with the South Asian nation since 2017.

"When I look at the relationship over the past six years of the Labour-Green government, all I see is missed opportunities," he said.

McClay spoke at the conference in place of National leader Christopher Luxon, who wasn't able to attend due to a scheduling conflict.

"The prime minister can take some direct responsibility for this failure," McClay said. "He was the education minister when policies were changed to discourage Indian students from coming.

"In addition, the slow and often arbitrary nature of New Zealand immigration decision-making in issuing Indian visas has put a further strain on this relationship."

Labour leader Chris Hipkins said his government was committed to improving relations with India.

"When I met Prime Minister Modi in PNG (Papua New Guinea), we both agreed to not leave it to cricketers to improve our relations," Hipkins said. "Increased engagements at the government level, in addition to trade and business interactions, is the way forward."

In her opening address, Indian High Commissioner to New Zealand Neeta Bhushan hailed the increased top-level engagements between the two countries over the past year or so.

"Apart from several high-level ministerial visits, the highlight was the meeting of the two prime ministers in Papua New Guinea in May this year," she said.

A notable attendee at the summit was Rajkumar Ranjan Singh, India's minister of state for external affairs, who was in New Zealand on a week-long visit.

Singh held meetings with ethnic communities' spokesperson Priyanca Radhakrishnan and education spokesperson Jan Tinetti during his stay.

The participants acknowledged the renewed momentum in bilateral relations, explored possibilities for further cooperation in the education sector and discussed welfare measures put in place for Indian students in New Zealand.

During his visit, Singh also interacted with the Indian diaspora in Queenstown and Christchurch.

The half-day summit featured a slew of speakers, including representatives of Indian companies doing business in New Zealand such as IT giants TCS and Zoho.

Carmen Vicelich from Valocity and Geoff Allott from Quality New Zealand shared their experience of entering the Indian market.

"To be in India, you have to marry India," Vicelich said. "Just dating doesn't work there."

Allott noted that business relations with India had changed significantly in recent years.

"From red tape to red carpet - this is how much India has changed in the 11 years we have been there," Allott said.

Arunima Dhingra, chairperson of the New Zealand Association for Migration and Investment, called on New Zealand to improve its immigration policies.

"We need consistency in our immigration settings," Dhingra said. "Constant chopping and changing policies help no one. Instead, it damages the New Zealand brand."

Honorary Consul of India in Auckland Bhav Dhillon and Auckland Business Chamber Chief Executive Simon Bridges said New Zealand businesses should concentrate on breaking into specific regions of India before trying to work with the entire country.

"The world narrative has shifted from 'Why India' to 'How India' now," Dhillon said. "Don't be transactional when you go to India would be my advice."

Suzannah Jessep, director research and engagement at the Asia New Zealand Foundation, who has served as New Zealand's deputy high commissioner to India said New Zealand businesses should co-create value with their Indian partners.

"The government can help facilitate it with more diplomatic resources on the ground," Jessep said.

"The FTA (free-trade agreement) between India and Australia was preceded by the Peter Varghese report, which proved to be a turning point in their bilateral relations," she said. "We need something like that to happen in New Zealand as well."

The India Business Summit was jointly organised by the Indian High Commission and the Auckland Chamber of Commerce.

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