Opportunities, Challenges, and Strategies for New Zealand Businesses in the Indian Market
Since the economic liberalisation in the 1991-92, India’s global presence has been steadily increasing. It is one of the fastest growing economies of the world with growth rates of 6-7 per cent per annum. Due to it favourable demographic and geographical location, India plays an important role in world today and economic strategies of EU and USA can be testimony to this. India can become the third ‘global economic giant’ by 2050 and its share of global GDP in $ terms could increase from 2% in 2009 to around 13% in 2050 (Hawksworth, Zimmern, & Boxshall, 2013). New Zealand on the other hand has traditionally been a small economy and has heavily relied on United Kingdom and rest of the world. The nation has not faired very well economically due to its remote geographical location, small size of firms and its dependency on primary sector. However, there has been recent shift towards secondary and tertiary sector and also towards other economies of the world primarily focusing on India and China. India at present is New Zealand’s 7th largest market.
India has a huge consumer market of over 1.2 billion and rising. According to (Beinhocker, Farrell, & Zai, 2007), India will be the world’s fifth largest consumer market with middle class rising to 583 million. Hence, it provides a great opportunity to New Zealand business to tap this huge market which is not available to them in their country. The other opportunities arising in in India are in its manufacturing sector which has been lagging behind in the overall development of the nation but is now being the focus of attention. India has emerged as a global headquarter for frugal innovations and engineering due to it sensitivity to low resource environment. India thus, presents an opportunity of a unique business model whereby it is attracting global talent in value creation through rapid transformation in product engineering business and business in New Zealand focus on innovation to survive thus, they can benefit from
India has a huge consumer market of over 1.2 billion and rising. According to (Beinhocker, Farrell, & Zai, 2007), India will be the world’s fifth largest consumer market with middle class rising to 583 million. Hence, it provides a great opportunity to New Zealand business to tap this huge market which is not available to them in their country. The other opportunities arising in in India are in its manufacturing sector which has been lagging behind in the overall development of the nation but is now being the focus of attention. India has emerged as a global headquarter for frugal innovations and engineering due to it sensitivity to low resource environment. India thus, presents an opportunity of a unique business model whereby it is attracting global talent in value creation through rapid transformation in product engineering business and business in New Zealand focus on innovation to survive thus, they can benefit from
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