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India Overview
Land Area – 3.3 million sq km
Population – 1.166 billion (2009 estimate, EIU)
Capital City – New Delhi
Religion – Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, others 1.8%
Official Language – Hindi is the national language and primary tongue of 30% of the population. There are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi and Sanskrit. English is widespread in business circles and as a second language.
Currency – Rupees (Rs).
Political system – India is a constitutional democracy with a bicameral legislature. India is a union of 28 states, each with their own legislature and state government. In addition, India has 7 Union Territories. At the centre, the Indian system is modelled on the Westminster system. The lower house is elected by universal adult suffrage. The President of India is the Head of the Union, but acts in accordance with the advice of the Council of Ministers, headed by the Prime Minister. In the states, the Governor is Head of the Executive, but it is the Council of Ministers headed by the Chief Minister in whom real executive power vests.
National government – United Progressive Alliance (dominant party: Indian National Congress).
National legislature – Bicameral legislature with 245 members in the Rajya Sabha or the upper house and 545 members in the Lok Sabha or the lower house.
Last election – May 2009
Next election due – by May 2014
Head of State – President Smt Pratibha Devisingh Patil
Head of Government – Prime Minister Dr Manmohan Singh
Key Ministers:
Main political parties:
Indian National Congress (Congress)
Bharatiya Janata Party (BJP)
All India Trinamool Congress (TMC)
Dravida Munnetra Kazhagam (DMK)
Samajwadi Party (SP)
Rashtriya Janata Dal (RJD)
Janata Dal (United)
Bahujan Samaj Party (BSP)
All India Dravida Munnetra Kazhagam (AIADMK)
Bijou Janata Dal (BJD)
Nationalist Congress Party (NCP)
Communist Party of India (Marxist), or CPI (M)
Nominal GDP – US$1,281.0 billion (2009 estimate, Economist Intelligence Unit)
GDP breakdown (2008, World Bank):
GDP Per Capita – US$1,098 (2009 estimate, EIU)
GDP Per Capita (PPP) – US$3,203 (2009 estimate, EIU)
Real GDP Growth – 6.8% (2009 estimate, EIU)
Exports FOB – US$164,293 million (2009 actual, EIU)
Imports – US$268,406 million (2009 actual, EIU)
Main merchandise exports – Engineering products, petroleum products, textiles and textile products, gems and jewellery.
Exchange rate – Rs 48 = US$1 (2009 average, EIU)
Consumer inflation – 12% (2010 forecast, EIU)
Gross external debt – US$221.7 billion (2009 estimate, EIU)
Budget balance (% of GDP) – -6.7% (2009 estimate, EIU)
New Zealand/India bilateral trade figures are available online from Statistics New Zealand at http://www.stats.govt.nz [external link].
New Zealand Exports - NZ$733.5 million
New Zealand Imports - NZ$358.9 million
Source: Statistics NZ (for the 12 months to April 2010).
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India’s economic growth has been matched by an expansion in New Zealand’s trade and economic relationship with India. There is potential for growth in both goods and services – agriculture products, tourism, education, and consultancy services. India’s outreach to its diaspora has also served to strengthen people to people ties.
There are a number of bilateral treaties in force between New Zealand and India, the earliest of which date from 1963, covering a range of areas including air services, double taxation and wool purchasing. In addition, there are bilateral arrangements on agriculture, plant quarantine, information technology, education, and science and technology.
Multilateral Links
India's "Look East" policy, and its participation in regional institutions such as the East Asia Summit (EAS) and ASEAN Regional Forum have led to increasing interaction between New Zealand and India. India’s interest extends to the Pacific Island states. In 2003 India became a dialogue partner of the Pacific Forum. Our common membership of the EAS has provided a high level platform for bilateral dialogue, including on climate change. Other issues include our interests in United Nations reform, Commonwealth matters, human rights, the Global Research Alliance on Agricultural Greenhouse Gases, counter-terrorism and other transnational issues.
Two-way goods trade between New Zealand and India is now worth over NZ$1 billion (up from NZ$631 million two years ago). Exports were worth NZ$733.5 million for the year ending April 2010, more than double our exports two years ago of $354.1 million, and now our 11th largest market. Imports from India were worth NZ$358.9 million in the same period.
The principal New Zealand export items to India are primary commodities (see ‘Key Facts’ section below for trade statistics). Coal exports have led the increase in New Zealand trade with India in recent years. Log exports and wood pulp continue to strengthen, along with hides and skins used in the manufacture of leather goods. Dairy products and fruit have recently become significant trade items despite high tariffs faced. Wool, as an input into Indian carpets, has traditionally been an important export to India, but is declining. There is great potential for exports to diversify, particularly through the free trade agreement currently under negotiation (see below), which aims not only to eliminate tariffs but address a range of non-tariff barriers.
There has been steady growth in our services trade with India, most notably in tourism and education (see below). Opportunities for growth in other services sectors and in investment include professional and business services, environmental services, engineering and construction services, and services incidental to agriculture and forestry.
The first round of negotiations between New Zealand and India for a bilateral free trade agreement (FTA, or Closer Economic Cooperation Agreement – CECA) took place in Wellington in April 2010. This followed the announcement in January 2010 by the New Zealand and Indian Trade Ministers to begin these negotiations. In 2009, a joint feasibility study had concluded that the two economies are largely complementary, and a FTA would deliver an outcome of genuine mutual benefit. The second round of FTA negotiations is expected to take place in India in August.
Delivery of a high quality trade agreement will raise the profile of New Zealand businesses in India and assist in developing their understanding of the Indian market. An FTA would facilitate connections and act as a catalyst for trade promotion, as well as underpinning stronger bilateral interaction and cooperation in related areas (eg sanitary and phytosanitary issues).
For more details see the Ministry’s New Zealand-India FTA page .
New Zealand and Indian officials meet regularly through the NewZealand/India Joint Trade Committee (JTC). The JTC was established under the New Zealand/India Trade Agreement signed during the visit of Rajiv Gandhi to New Zealand in October 1986. The purpose of the JTC is to discuss and negotiate bilateral trade policy and trade access issues.
India’s average tariff overall is 11.9% but this varies markedly across sectors. High tariffs on items of interest to New Zealand, particularly agricultural and value-added products, continue to restrict our exports. In recent years, however, India’s average applied tariff rate has reduced in line with its tariff policy and WTO commitments. India’s employment of non-tariff barriers, particularly sanitary and phytosanitary (quarantine) barriers, have also restricted New Zealand exports to India.
There is a vibrant Indian community of over 100,000 in New Zealand (2006 census), around 2.5% of the population (see also the Te Ara Encyclopedia of New Zealand pages on Indians in New Zealand . New Zealanders of Indian origin are prominent in sectors such as politics and public life (Governor General and MPs), business, medicine, education, sports and the arts. The community is spread throughout New Zealand, with the largest group in Auckland.
Education and tourism are important areas in the bilateral relationship and have both experienced significant growth in recent years. There are strong sporting links (mainly through cricket), and increasing cultural interaction.
India is one of New Zealand's fastest growing education markets, now our fourth largest (after China, South Korea, and Japan). There were 8.673 international fee-paying students from India in New Zealand in 2009 (who contributed about NZ$100 million to the local economy), up from 4,600 in 2008. (For more detailed information, see the statistics section of the Education Counts website. Most Indian students are enrolled in private training institutes (47%) and polytechnics (26%), with a small proportion in universities (16%). There is a New Zealand Education Counsellor in New Delhi seconded from the Ministry of Education.
India’s Minister of Human Resources Development (with responsibility for both the education and tertiary education portfolios) Hon Kapil Sibal visited NewZealand from 10 to 14 April 2010. The NewZealand-India Education Cooperation Arrangement, first signed in 2005, was formally renewed during his visit. The Arrangement is a broad framework for bilateral cooperation on education. It established an Education Joint Working Group of senior officials, which has now met twice: in Wellington in January 2008, and in New Delhi in February 2010 (attended by Education Secretary Karen Sewell). This follows the visit to New Zealand in January 2010 by a senior Indian delegation focussed on technical and vocational education and training. India and New Zealand have agreed to continue education policy dialogue and implement projects in a number of areas.
26,111 Indian tourists visited New Zealand in the year to March 2010 with an estimated total spend of NZ$100 million (up from 16,000 in 2004, moving from 19th to 9th place). Indians prefer to visit during their summer (April to June), making them an important source of visitors for New Zealand's autumn shoulder season. Tourism NZ has an office in Mumbai. (For more information on tourism links, see www.tourismnewzealand.com/markets-and-stats/south-east-asia/india and www.newzealand.com/travel/india/india_home.cfm.)
There are no direct air links between India and New Zealand. The majority of travellers transit through Singapore or Hong Kong. A bilateral Air Services Agreement was signed in 2006 (and updated in 2007), which provides for direct aircraft services to take place between Mumbai and Auckland. Additionally, New Zealand carriers can code-share to five Indian cities (Mumbai, NewDelhi, Chennai, Hyderabad and Kolkata) and Indian carriers can code-share to five NewZealand cities (Auckland, Wellington, Christchurch, Queenstown and Dunedin). These code share services can also be via Australia, Singapore, or Hong Kong.
A large number of New Zealand athletes and supporters will participate in the 2010 Commonwealth Games hosted by India in New Delhi, 3-14 October.
New Zealand and India also have strong cricketing relations. New Zealand and Indian cricket teams play each other frequently at various international arenas and also tour each others’ countries regularly. The New Zealand Black Caps will tour India in November/December 2010, and the last tour of the Indian cricket team to New Zealand was in February/March 2009. In recent years a number of New Zealand cricket players have been members of teams in the high profile Indian Premier League (IPL). India will host most of the matches for the Cricket World Cup in 2011.
The Asia New Zealand Foundation organises highly successful annual Diwali Festivals in Auckland and Wellington to celebrate the Indian festival of lights. The Diwali Festivals are well-attended and have become one of the largest annual events in the Auckland and Wellington cultural calendars.
The NewZealand International Festival of the Arts has also featured Indian artists. In recent years there have been Indian entries in the World of Wearable Art show in Wellington, with a now annual World of Wearable Art event taking place at the New Zealand High Commission in New Delhi in conjunction with the Fashion Design Council of India.
In May 2003, as part of India’s celebration of the 50th Anniversary of the ascent of Everest, Sir Edmund Hillary was honoured by the Indian government. A plaque was presented to Sir Edmund Hillary by the Indian Prime Minister, Atal Bihari Vajpayee and two roads in front of the New Zealand High Commission in New Delhi were named after Sir Edmund Hillary and Tenzing Norgay. In January 2008, Sir Edmund Hillary was posthumously awarded the “Padma Vibhushan”, one of India’s highest civilian honours. The award was presented to Lady June Hillary in Auckland in May 2008 by Indian Minister of Commerce and Industry, Hon Kamal Nath.
Negotiations are underway for a bilateral Film Co-Production Agreement. This agreement would be a catalyst for cooperation between the New Zealand and Indian film industries, facilitating the production of films by led by co-producers from both countries and consisting of joint creative inputs and crews.
New Zealand has modest but warm defence links with India. The Chief of the New Zealand Defence Force (CDF) Lieutenant General Mateparae visited India in November 2009 (the first such visit) to explore ways to expand the defence relationship. The 60-strong New Zealand Defence Force Command and Staff College also visited at the same time.
Most bilateral defence interaction occurs between the two navies. HMNZS Te Mana visited Mumbai in August 2008. Earlier, HMNZS Te Mana and Endeavour visited Port Blair in the Andaman Islands in May 2007 following exercises with Indian naval ships; HMNZS Te Mana visited Kochi and Mumbai ports in June 2006; and the Indian ship Tabar visited Auckland in 2006. New Zealand has useful defence interaction with India in the ASEAN Regional Forum (ARF), through the defence dialogue process and through the Forum’s range of confidence-building measures, as well as through the Western Pacific Naval Symposium.
While New Zealand does not have a dedicated aid programme for India, in recent years some support has been provided to NGOs and relief agencies working in India – through two schemes, Kaihono hei Oranga Hapori o te Ao / Partnerships for International Community Development (KOHA-PICD) and the Humanitarian Action Fund (HAF). In 2008/2009, New Zealand provided NZ$3.18 million of funding for NGOs and relief agencies working in India under these two funds. (As of June 2010, these funds are no longer active.)
Recent New Zealand high level visits to India
The Safetravel website provides a travel advisory for travellers to India [external link].
Country |
URL |
Australia |
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Canada |
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United States |
Website |
URL |
Government portal site |
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Foreign Ministry website (Ministry of External Affairs) |
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Indian Parliament website |
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Trade/business organisation sites |
1. New Zealand Trade and Enterprise (NZTE) – Doing Business in India: www.nzte.govt.nz/explore-export-markets/South-and-Southeast-Asia/doing-business-in-india/Pages/Doing-business-in-India.aspx |
Media organisations |
1. The Times of India: http://timesofindia.indiatimes.com 2. The Hindu: www.thehindu.com 3. The Economic Times: http://economictimes.indiatimes.com |
