India-New Zealand Relations
Context:
At the 10th edition of the Raisina Dialogue, New Zealand Prime Minister Christopher Luxon, the conference’s chief guest, highlighted three major geopolitical shifts shaping the world: the growing influence of power over rules, the prioritisation of security over economic considerations, and a shift from trade efficiency to protectionism and resilient supply chains among trusted partners.
More on News
- Against this backdrop, Mr. Luxon underscored the potential for closer ties between India and New Zealand, despite their size differences.
- As democratic nations, both share a vested interest in ensuring freedom of navigation in the Indo-Pacific.
- Following his meeting with Prime Minister Narendra Modi, India and New Zealand signed a defence Memorandum of Understanding (MoU) to enhance military cooperation, including staff college exchanges and naval port visits.
- Additionally, both countries agreed to restart discussions on a free trade agreement (FTA) to expand their relatively modest bilateral trade, currently valued at under $2 billion.
History of the Engagements
Historical Relations: The relationship dates back to the 1800s when Indians began settling in New Zealand, particularly in Christchurch (1850s) and later in larger waves from Punjab and Gujarat during the 1890s. Indian troops fought alongside ANZAC forces in Gallipoli during World War I (1915).
Diplomatic Relations: Diplomatic relations were formally established in 1952 with the opening of India’s Trade Commission in New Zealand, later upgraded to a High Commission.
Political Ties: Both nations share Commonwealth heritage, parliamentary democracy, and common law practices. High-level visits have strengthened ties, including Prime Minister Indira Gandhi’s visit in 1968 and President Pranab Mukherjee’s state visit in 2016.
Challenges in Trade Relations
- Dairy Products: Despite the renewed commitment to trade discussions, challenges persist, particularly concerning market access for dairy and agricultural products.
- RCEP: These concerns played a key role in India’s decision to withdraw from the Regional Comprehensive Economic Partnership (RCEP), of which New Zealand is a member.
- China: In contrast, New Zealand’s trade relationship with China remains significant, amounting to approximately $24 billion, despite broader strategic concerns.
Enhancing Connectivity
- A significant development in bilateral ties was the signing of a codeshare agreement between Air India and Air New Zealand, which is expected to improve connectivity.
- This agreement could lead to the introduction of direct flights between the two nations by the end of 2028, facilitating greater people-to-people exchanges and economic opportunities.
Addressing Diplomatic Sensitivities
- Despite the generally positive discussions, Prime Minister Modi expressed concerns over “anti-India activities by certain illegal elements” in New Zealand, referencing protests and a Khalistan referendum organised by the ‘Sikhs for Justice’ group in Auckland last November.
- While this issue had previously been raised at the Foreign Ministerial level, New Zealand’s police ruled the protests to be lawful.
- In response, Mr. Luxon reaffirmed New Zealand’s commitment to free expression but also emphasised the need to prevent foreign political conflicts from affecting its diverse immigrant communities.
- While these concerns are valid, addressing them publicly risks deepening divisions within the 3,00,000-strong Indian diaspora and potentially overshadowing the growing strategic and economic cooperation between the two nations.
Way Ahead
- India and New Zealand stand to gain significantly from increased collaboration, particularly in trade, defence, and regional security.
- As democracies positioned at opposite ends of the Indo-Pacific, their partnership could contribute to greater regional stability and economic growth.
- Strengthening diplomatic engagement, overcoming trade barriers, and fostering people-to-people ties will be essential in realising the full potential of this evolving bilateral relationship.
