India and New Zealand’s ties date back to 1800s and have grown stronger ever since. India, one of the most booming economies across the world, offers opportunities for Auckland entrepreneurs to start new business ventures. As per a report by Deloitte, the annual GDP growth projection of India ranged between 6.5% and 6.8% in the fiscal year 2023-2024. Even after challenges, roadblocks and economic slowdown due to COVID-19, India remains an attractive destination for commercial practices. In this blog, we’ll highlight the key developments of India, which make it a well-suited country for Aucklanders to invest in various business ventures.
Increase in Mass Rural Consumption
The rural population constitutes of 68.8% of the total population of India. A strong desire to find employment in order to improve the standards of livelihood has been a major factor boosting the consumption of various consumer goods in the rural areas of India. This offers an opportunity for Aucklanders to tap into the sectors such as pharmaceutical, electronics, and FMCG, among others.
Diplomatic Ties between India and New Zealand
Being the world’s fifth largest economy and the most populated country in the world, India is an important trading partner for New Zealand. The two nations have been working relentlessly towards implementing free trade agreements. This initiation has underscored a deeper engagement in political, cultural and economic areas. In April 2024, India and New Zealand held a joint meeting to enhance collaboration in key sectors such as agriculture, food processing, forestry, and pharmaceuticals, among others. This collaboration might expand the business opportunities for Aucklanders in the coming years.
Key Industries for Aucklanders
1. Information Technology:
India is a hub of emerging technologies, such as artificial intelligence (AI) and machine learning. Explosive adoption of internet of things (IoT), cloud computing and 5G networks across various end use sectors has driven business opportunities for New Zealand nationals.
2. E-Commerce and Retail
According to the Indian Ministry of External Affairs, the retail dynamics of India are massively impacted by the explosive growth of the e-commerce sector. This sector will further be bolstered by the advent of quick-commerce, fuelled by the rapid adoption of mobile phones and internet services in the country. Hence, there is an ample amount of space for budding Auckland entrepreneurs to seek growth in this field.
3. Healthcare
According to Bain & Company, the healthcare innovation in India is a $30 billion opportunity, dominated by the soaring advancements in the pharmaceutical and medtech sectors. In this regard, Auckland entrepreneurs can offer innovative healthcare solutions. Moreover, they can also bear the fruits of the increasing healthcare spending across urban areas of India such as Mumbai and Delhi.
4. Manufacturing
India is witnessing swift changes in the manufacturing sector, thanks to the favorable government initiatives and incentives, promoting the growth of automobiles, electronics, EVs, and textiles, among other power-driven domains. In addition, solid investments in roads, railways, ports and power have acted as a fuel to the growth of the manufacturing industry. Hence, Aucklanders can redeem employment and business opportunities in this space.
Documents Required to Enter India
Visitors from foreign lands enter India on tourist visa, which is an ideal document for short-term sight-seeing and exploring. But to attain your professional or commercial goals, you must attain a business visa. Business Visa for India are of two types:
I. Regular business visa:
This type of visa is applicable for New Zealand citizens entering India for various commercial activities. To gain access to regular business visa, one has to reach out to the Indian embassy in New Zealand. It allows the holder to stay in India for 180 days which is subject to multiple entry. Multiple entry means you can enter the country as many times as needed within 12 months. This type of visa is applicable for following purposes:
- Buying or selling goods
- Promoting products
- Investing in start-ups
- Beginning new business venture
- Attending meetings
- Others
What is the eligibility for regular business visa for Auckland citizens?
In order to gain access to the regular business visa, Auckland citizens need to verify the following documents:
- Visa application form
- Valid passport
- Business support letter
- Business invitation letter
- Letter of incorporation
- Proof of residency
- Proof of status
II. Business e-visa
This type of visa is applicable to the New Zealand citizens visiting India for the same purposes as above. Except, Aucklanders need do not have to visit the embassy to attain it. Business e-visa can be accessed virtually, using this link.
What is the eligibility for regular business visa for Auckland citizens?
- Basic Requirements
- Electronic/scanned copy of the first (biographical) page of the standard Passport (not Diplomatic or any other type), valid for at least 6 months from entry into India
- colored photo (passport size preferred)
- Valid email address
- Debit or credit card for application fees
- Business-related requirements
- Details of the Indian organization to be visited
- Name and address of reference in India
- Website of the associated company
- Letter of invitation from the Indian company
- Business card and website letter of the Australian visitor
- Return ticket (Optional)
Challenges in the Indian Market
India being the world’s fifth largest economy with the youngest population across the globe offers ample amount of opportunities for Aucklanders. However, this fruitful market comes with its share of challenges. In this section, we have deciphered four major challenges in the Indian business market which a budding entrepreneur should be aware of:
1) Corporate income tax:
Two of the major challenges associated with the corporate income tax in India are the time and rate. According to the World Bank, filing and paying taxes in India is abysmally time consuming and takes approx 252 hours per year. Plus India has a 30% CIT rate (excluding education cess and surcharge), one of the highest in the world.
2) A vast and highly fragmented market:
The diversity, size and fragmentation of the Indian market poses a threat to the businessmen and investors. The rules and regulations are varied in different states, so do the cultures, languages, and corporate landscapes, among others.
3) Lack of Infrastructure:
Although there have been heavy investments towards infrastructure development, the shortage of transport networks, internet services, roads and some of the basic amenities remain scarce across the rural areas. It is a major challenge to be countered by the budding entrepreneurs in Auckland.
4) Non-transparent Tariffs:
When doing business in India, a lot of foreign investors and exporters encounter a non-transparent and high-tariff amount. This factor contracts the access to the Indian market, rendering a significant amount of uncertainty.
Conclusion
India offers a vast and dynamic space for professional growth for Auckland entrepreneurs in sectors such as healthcare, manufacturing, and IT, among others. The country is among the world’s fastest growing economies with a population of 1.45 billion.
The deepening ties between India and New Zealand further encourage Auckland entrepreneurs to explore new opportunities in the country. However, the business market in India is challenged by various factors such as lack of infrastructure, market fragmentation, and high tax rate, among others, but the rural expansion will counter balance these challenges by enhancing the consumer demand.
