IndiaOpening the DoorsDon Rae, International Market Manager: India May 2012

• To highlight the purpose of the strategies

• To highlight the goals

• To highlight services & support that business can access

Today’s presentation

different crowded unpredictable complex kaleidoscope Gandhi cricket mind-blasting Jai Ho! Frag ment ed extreme protectionist chaotic marigold intense difficult incredible! the Raj competitive price colourful poverty wealth red tape Bollywood fascinating Government monsoon karma Taj Mahal assault on the senses paradox

Impressions

• India to become a core trade, economic and political partner by 2015

• To outline why NZ exporters should target India

• To provide the information/contacts needed to get started

• To provide a framework so public/private sector can work together

Purpose of the NZ Inc, India Strategy

Vision: India will become a core trade, economic and political partner of New Zealand by 2015

• Grow merchandise exports to at least NZ$2 billion – complete FTA, protect existing commodity trade, boost non-commodity exports

• Grow our services trade with India by an average of 20% per annum

• Improve the bilateral investment relationship and facilitate growth in investment

• Attract and retain skilled migrants from India

• Engage more deeply with India on regional and global issues that will affect New Zealand’s future prosperity and security

• Raise the profile of New Zealand’s value proposition in India – branding, cricket diplomacy, political contacts

NZ Inc India Strategy Goals

Services/Support

• NZTE – see next slide

• India New Zealand Business Council – information, contacts

• Ministry of Science & Innovation – R&D funding

• MFAT – engagement/consultation on India FTA

• Local EDA (ATEED) – business development services

• Ministry of Education – export education, education fairs

• MAF – biosecurity, certifications

• High Commission of India to New Zealand – visas, information

NZTE: We help New Zealand businesses to grow bigger, better, faster in international markets

Telling New Zealand’s story

Marketing collateral: the fern Websites: nzte.govt.nz nz.com Success stories Social media

Supporting the Internationalisation journey

Connections Market information Strategies and solutions International Development Grant

Building better businesses

Regional partner networks Business design Access to business & technology experts Capital solutions

Collaborating with coalitions of the willing

High impact projects NZ Inc country strategies Trade missions NZ promotions at business events

NZ$ 938 million: 80% Commodities: Coal, wood, dairy, wool, hides & skins, metal, fruit

Plus Services: Tourism, Education, ICT, Architecture

We import: pharmaceuticals, gem stones, electrical machinery, apparel & textiles, machinery, leather

New Zealand’s exports to India

• Understand the market: supply chain, focus, competition, price

• Choose the right partner in the right place at the right time

• Proactive: follow-up, due diligence, promotion, persistence

• Patience and commitment: long-term investment, regular visits

• Understand the rules and what they mean

• Adapt your offering to the local market: Indianise

• Exit strategy

Keys to Success

• Agent / broker

• Distributor, customer, contractor etc

• Representative office

• Branch office

• Project office

• Franchise / technology transfer

• Wholly owned subsidiary

• Joint venture / acquisition

Market entry options

Consumer lifestyle Skills

Infrastructure

InnovationFood supply chain

Industry

•Agritech•Dairy•Fruit

• Aviation• Value added wood• High value manufacturing

services

• Education

• ICT• Healthcare

• Commodities

• Food & beverages• Tourism

Opportunities for New Zealand

INDIA

• Networks: it’s all about relationships

• Family: “business becomes personal” & business families

• Hierarchy: everything flows from the top, but consensus required

• Judgement: deciding what to put on the table, when to act

• Time: more about intentions, understanding and relationships

• Communication: be clear what is agreed, what is understood

• Beliefs: respect religion and tradition as part of the business fabric

• Corruption: NZ Crimes Act

• Reciprocity & social responsibility

• Government is everywhere

Business culture

Characteristic Characteristic

Universal Rules NZ INDIA

Particular Relationships

Individual decision  NZ INDIA

Communal decision

Neutral: controlled  NZ INDIAEmotional: expressive

Specific involvement NZ INDIA

Diffuse involvement

Status by Achievement

NZ INDIA

Status by Ascription

Sequential time  NZ INDIA Synchronic time

Internal control  NZ INDIA

External environment

From “Riding the waves of Culture” – Fons Trompenaars & Charles Hampden-Turner

Cultural Differences

Delhi Richard White, Trade Commissioner

richard.white@nzte.govt.nz

With Ministry of Foreign Affairs & Trade, Immigration NZ, Education NZ

Mumbai Gavin Young, Consul-General

& Trade Commissioner

gavin.young@nzte.govt.nz

With Immigration NZ, Tourism NZ

CONTACT: Your NZTE Customer Manager or Tel. 0800 555 888

Don Rae don.rae@nzte.govt.nz 027 227 9028 03 372 7525

NZTE in India