The country’s rich natural resources and an import-dependent economy offer Indian businesses exciting opportunities
The widening demand-supply gap for coking coal in India is prompting companies to explore mines in New Zealand. The country has extremely high quality of coking coal for the steel industry.
Gujarat NRE Coke, the metallurgical coke producer, holds stake in Pike River Coal, a company that has mines located on the South Island’s West Coast in New Zealand. Another Indian company that holds stake in Pike River is Saurashtra Fuels. The mine is expected to produce 17.6 million tonnes of high quality, low ash coking coal that would be used by steel manufacturers. According to estimates, India’s demand for coal – thermal and coking – is likely to grow to 1.87 billion tonnes per year by 2026.
| DARE/country facts |
| Area: 268,021 SQ KM |
| Average Temperature: Summer: 20 - 30ºC Winter: 10 - 15ºC. |
| GDP: $112.4 billion (2007 est.) |
| GDP per capita : $27,200 (2007 est.) |
| Exports: 27.35 billion (2007 est.) |
| Population: 4,173,460 (July 2008 est.) |
| Labor Force: 2.236 million (2007 est.) |
Besides coal, several other sectors in New Zealand, one of the most picturesque countries in the world, are attracting Indian businesses and entrepreneurs. These include information technology, biotechnology, pharmaceuticals and green technologies. The country has significant expertise in geo-thermal and hydro power. Forestry is another area that is gaining traction. “We supply huge quantities of timber to India. It tends to be exported in the form of logs. It comes over to Gujarat, mainly to Kandla port. We now have Indian investors looking at that opportunity,” says Paul Vaughan, New Zealand Trade Commissioner for South Asia.
Why New Zealand?
The island country in the south-western Pacific Ocean is rich in terms of natural resources and has world-class road and transport systems. Its deep-water ports and international airports make it a major business hub in the region. Although the population of the country is only four million, its citizens belong to the high-income group and thus possess considerable purchasing power. Its economy is highly import-dependent, as the country does not have a large manufacturing base for consumer products. This offers a great opportunity for Indian exporters to look at the lucrative New Zealand market, as everything from crockery to clothes and shoes are imported. However, China remains a big challenge as a free trade agreement (FTA) between China and New Zealand is now operational. An FTA between India and New Zealand could be a possibility in the near future given that both countries are studying the benefits of such an agreement. “We have the study going on at the moment about the benefits of a free trade agreement. The two countries are studying the benefits; our ministry of foreign affairs and trade and your ministry of commerce. If it concludes and there are benefits then it will go through the formal FTA negotiations later this year,” says Vaughan. Two acquisitions by Indian companies are believed to be in the pipeline – one in the biotechnology sector and the other in IT.
| DARE/doing business 2009 | |||
| Ease of…. | 2009 Rank | 2008 Rank | Change in Rank |
| Doing Business | 2 | 2 | 0 |
| Starting a Business | 1 | 3 | 2 |
| Dealing in Construction Permits | 2 | 2 | 0 |
| Employing Workers | 14 | 14 | 0 |
| Registering Property | 3 | 1 | -2 |
| Getting Credit | 5 | 5 | 0 |
| Protecting Investors | 1 | 1 | 0 |
| Paying Taxes | 12 | 10 | -2 |
| Trading Across Borders | 23 | 17 | -6 |
| Enforcing Contracts | 11 | 14 | 3 |
| Closing a Business | 17 | 16 | -1 |
| Source: World Bank Doing Business 2009 Report | |||
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  written by Sherni Enterprises, April 13, 2009
Manufacturer of High Security Combination Lock and unique HouseHold product
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