Trade delegation heads to Delhi with hope of paving way for direct flights to India

New Zealand’s largest-ever trade delegation to India is heading to Dehli this week with one of its goals being to try to spark Air India’s interest in investing in direct flights to and from New Zealand.

Stephen Jacobi, executive director of the New Zealand International Business Forum, said the largest economic flow between the countries was the travel of tourists, immigrants and students.

“We want to start talking about what has to happen to get a direct flight from India. It is not going to happen as a result of this, but over the longer term.”

The main issue was finding an airline that was interested in taking up the opportunity, he said.

“I don’t think it’s on Air New Zealand’s radar screen at all.”

But he said Air India was planning to significantly increase its overall capacity and the New Zealand delegation would be energetically making the case for it to consider the route.

Representatives from Auckland Airport are among nearly 50-strong New Zealand delegation and discussions with Air India were planned, he said.

“It’s about working with the airports and the Government to point out the nature of the opportunity at the moment.

“This is a commercial thing for airlines. We just have to paint a picture for them that’s compelling.”

It was possible to travel to India in a variety of ways, for example via Australia or Singapore, but none of the options were ideal, Jacobi said.

“A direct service would have a lot of benefits for individual travellers, but also for freight and cargo.”

Reserve Bank governor Adrian Orr suggested last week that New Zealand exporters could respond to a slowing of the Chinese economy by further diversifying their markets.

Zespri spokesperson Michael Fox, who chairs the India New Zealand Business Council, said New Zealand was “behind the eight-ball” with regard to the large and growing Indian market.

“I remember being there a couple of years ago with ministers David Parker and Winston Peters just before Covid hit and everyone was telling us the Aussies were wiping the floor with us and then, to make matters worse, we got stuck in Donald Trump’s motorcade.”

New Zealand’s exports to India totalled just under $1 billion in the year to the end of March, according to Stats NZ, which was significantly less than its exports to either Indonesia, Taiwan, Malaysia or Thailand despite it being the world’s second-most populous country, while imports valued just under $1.6b.

Jacobi said New Zealand should always be interested in diversifying its markets.

China’s economy was going through a rough patch, while India was bucking the trend, he said.

But he cautioned that no-one should view India as a trade alternative to China, given the Chinese market was open and wanted to buy what New Zealand had to sell.”

“It’s not tomorrow that you’re going to change that around.”

Trade between India and New Zealand had been held back by a lack of understanding, he said.

“I don’t think Indian businesses necessarily know enough about New Zealand and I don’t know that New Zealand businesses know enough about India, at least in a deeper way that would enable them to do more complicated economic arrangements, like investments and strategic alliances.”

Auckland Chamber of Commerce chief executive Simon Bridges said the country’s five peak business organisations had “put aside any rivalries” to support the trade mission because they saw it as “so important”.

“This is not some ‘fly-by-night exercise’. This is a medium term strategy that we’re embarking on and it’s going to take relationship-building over time,” he said.

“It’s not going to happen overnight.”