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India- New Zealand
Context:
- The President of India Droupadi Murmu’s recent visit to New Zealand has resulted in several significant outcomes aimed at strengthening bilateral ties between India and New Zealand.
- Significance of the Visit is notable as it marks the second presidential visit to New Zealand in eight years, highlighting the growing importance of the relationship between the two nations.
Key Outcomes of the Visit:
- Strengthening Educational Exchanges:Both countries acknowledged the need to deepen partnerships in higher education and research, which is crucial for fostering people-to-people connections.
- Cultural and Traditional Medicine Cooperation:The visit included discussions on enhancing cooperation in traditional medicine.
India – New Zealand Relation:
Cultural and Historical Ties:
- Both countries share a common historical background as former British colonies and have similar parliamentary systems.
- The Indian diaspora in New Zealand, numbering around 250,000, has fostered strong cultural connections and people-to-people ties.
Economic Relations:
- India is New Zealand’s 11th largest trading partner, with significant bilateral trade in goods and services.
- The Comprehensive Economic Cooperation Agreement (CECA) aims to strengthen these economic ties further.
- The total bilateral trade between India and New Zealand was approximately US$1.56 bn during the year ending June 2023.
- New Zealand exported $581 million to India.India exported $412 million to New Zealand.
- Exports from New Zealand to India:
- Major products include:Coal Briquettes,Mechanical Wood Pulp.
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- New Zealand’s exports to India grew substantially at an annualised rate of 40.8% from $105 million in 2017 to $581 million in 2022, while India’s exports to New Zealand increased significantly at 37.9% annually, from $82.6 million in 2017 to $412 million in 2022.
Areas of Convergence in Relation:
- Shared Values and Interests: Both nations are dedicated to democratic values, human rights, and environmental protection and International terrorism.
- Educational and Research Collaboration: The India-New Zealand Education Council and the New Zealand India Research Institute foster academic exchanges and research partnerships, strengthening educational ties and mutual understanding.
- Around 8,000 Indian students are pursuing various courses in the country, making it the second largest group of international students there.
- Geopolitical Alignment:Both countries prioritise the stability and prosperity of the Indo-Pacific, collaborating in international forums like the UN and WTO to tackle shared challenges.
- Indian and New Zealand troops have served together in UN peacekeeping operations in Kosovo and Sudan.
- Both countries aim for Indo-Pacific prosperity and stability, engaging in the East Asia Summit and ASEAN Regional Forum.
- India is also a Post-Forum Dialogue partner in the Pacific Islands Forum.
- India and New Zealand share strong sporting ties, particularly in cricket, hockey, and mountaineering.
- Sir Edmund Hillary, a revered figure in New Zealand, also holds a notable place in India and served as New Zealand’s High Commissioner to India from 1985 to 1988.
Challenges in Relationship:
Trade Barriers:
- Issues such as phytosanitary regulations affecting the export of logs from New Zealand to India have been a concern.
- India’s high tariffs on agricultural products pose challenges for New Zealand’s primary sector exports, particularly dairy.
Stalled FTA Negotiations:
- Negotiations for a Free Trade Agreement (FTA) have stalled since the last round in 2015, impacting the potential for deeper economic integration.
Nuclear Policy Differences:
- New Zealand opposes India’s NSG membership, advocating for NPT adherence and nuclear disarmament through the New Agenda Coalition.
- It supports criteria for non-NPT signatories, a stance backed by China.
Limited Military Cooperation Between India and New Zealand :
- Compared to India’s other regional partnerships, despite ongoing discussions on defence and security.
Way Forward:
- High-Level Political Engagement: Further high-level visits in both directions are planned for 2024, which will be crucial for deepening ties.
- Air Connectivity and Tourism: The recent enhancement of the Air Services Agreement is expected to facilitate direct flights between New Zealand and India, significantly boosting tourism, cultural exchanges, and business interactions.
- Enhancing People-to-People Relationship: The International Day of Yoga (IDY) 2023 was celebrated across New Zealand from June 17th to 25th, with events in Wellington, Auckland, Christchurch, etc.
