By Kirsten Broomhall
WELLINGTON - Give Peter Healy a room filled with Indians and New Zealanders and he would gladly dispel the myths surrounding the two nations.
The New Zealand Trade Commissioner to India sees one of the biggest barriers to improving trade between the two nations as their perception of each other.
"If you asked the New Zealand population, they would see India as an extreme mudhole with extreme poverty," Mr Healy said.
"They don't see it as a market with the buying power of West Germany."
India has a population of about 960 million - surely a huge consumer market.
Well, not exactly.
According to a study last year by the National Council of Applied Economic Research, 80 per cent of Indians earn less than $2200 a year. Only 3.5 per cent of the population earn more than $4800.
However, 3.5 per cent of India's population makes more than 30 million potential customers who, Mr Healy pointed out, "can afford to buy world-class products such as New Zealand wine, foods, education and tourism".
All these areas have huge potential to be tapped by New Zealand.
Mr Healy and his Trade NZ team, based at the New Zealand High Commission in Delhi, are looking to bring New Zealand wine and food into the capital's five-star hotels to compete with the likes of Australian and European companies.
Similarly, they have encouraged the Indian film industry, the biggest in the world, to use locations such as Queenstown for their infamous Bollywood creations. Not only does it bring large crews and their working money to New Zealand, but the resulting movies promote New Zealand to the potential Indian tourist.
The Trade Commissioner's job has been somewhat of an uphill battle as a combined result of India's protectionist trade barriers and New Zealand's focus on Southeast Asia.
Meanwhile, the likes of the United States, Canada, Europe and Australia have moved in. The Austrade office in India has 37 staff. Trade NZ has three people to cover India, Sri Lanka, Nepal and Bangladesh.
However, things are changing, said Mr Healy. "With the problems in Southeast Asia, people have started to look at India."
Similarly, India has relaxed its trade barriers and, with a bit of education, is looking at New Zealand as a potential trading partner.
"Indians have no idea that such a small country is such a - what I term - big, little trading country.
"They are really surprised when I tell them that New Zealand exports just under half of what India exports.
"And they like us because they know we were dealt to by the British the same, and we don't like Americans much."
As proof of their increasing confidence in each other, trade between the two countries has grown by 24 per cent to $190 million this year.
Leading the way is Wools of New Zealand (WNZ), its exports making up about half of New Zealand's total exports to India.
WNZ supplies up to 60 per cent of wool for the Indian carpet industry and up to two million Indians are employed processing it in factories, said Mr Healy.
About 8 per cent of exported wool is for the garment industry, but most is coarser wool to make hand-knotted carpets .
Mr Healy describes the arrangement as a "win-win" situation.
"They take a high value product from New Zealand and turn it into much higher quality products which are selling in Berlin and New York for $US50 ($95) to $US100 per square metre.
"We provide expertise and marketing, we sell a product and give them the opportunity to trade their way out of the shambles they are in."
What many would see as a contributing factor to India's economic development stalemate is the country's strong sense of nationalism.
It is a barrier around which any potential traders must tread carefully.
For example, New Zealand apples and kiwifruit have been introduced to the Indian market on the basis that New Zealand helps India develop its own industry and doesn't impinge on that new territory.
So when the Indian fruit comes in season, New Zealand apples and kiwifruit are pulled off the market. This is no big problem as the products are counter-seasonal.
"As long as you can appeal to their nationalism you get good co-operation," said Mr Healy.
Another foot in the door is gained by seizing opportunities as they arise, such as when a Supreme Court order in 1997 banned timber milling in the northern foothills for conservation reasons.
New Zealand companies Fletcher Forests, Carter Holt Harvey and Rayonier moved fast and "almost overnight" developed a logging trade which has made $23-$24 million for each of the last two years.
New Zealand timber companies are now pushing pine to the Indians, who prefer to use hardwoods for their furniture and leave pine for boxing. If successful, the increase in trade could push New Zealand into third place, behind Korea and Japan, as the most important timber exporter to India.
And of course, there are the niche markets, like the rail equivalent of car washes for the "world's dirtiest trains"; hologram cards of cricket players used in Pepsi promotions; and hand-held radios for the rail network.
Mr Healy says the possibilities are endless.
"If you can link a New Zealand company with a good Indian agent you will get good service, extreme loyalty and, if you can get in a small niche here, there are great opportunities."
However, he warns against companies trying to go it alone. The Tradenz office is set up to help businesses negotiate the "slow and more corrupt than most" Indian bureaucratic system.
Mr Healy also believes New Zealanders' reputations makes them suitable to the Indian market.
"What makes India fun is it's anarchic.
"New Zealanders have that sort of can-do attitude, and don't expect a lot.
"If you want to have everything orderly go to Germany, and it's pretty boring.
"If you want total chaos, come to India." - NZPA
* Kirsten Broomhall travelled to Bangladesh and India on an Asia 2000 Foundation media travel grant.
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