Why in the News?
Prime Minister of New Zealand visited India on an official five day visit.
Key Outcomes of the Visit
- New Zealand (NZ) joined the Indo-Pacific Oceans' Initiative (IPOI) and becomes member of Coalition for Disaster Resilient Infrastructure (CDRI).
- Launch of negotiations on Free Trade Agreement (FTA) and for an arrangement facilitating the mobility of professionals and skilled workers.
Contemporary relevance of Bilateral relations
- Bilateral Trade: In 2023-24, India-New Zealand trade totaled $1.75 billion, with India having a trade surplus of 0.07 billion USD.
- New Zealand exports to India: Wool, iron & steel, fruit & nuts, aluminum.
- India exports to New Zealand: Pharmaceuticals, mechanical machinery, textiles, pearls & precious stones.
- Defence and Security Cooperation: E.g., Both countries' navies are working together in the Combined Task Force-150 for maritime security in the Indian Ocean.
- Mutual support on multilateral forums: E.g., both advocate the need for UN reforms, including of the Security Council through expansion in its membership, to make it more representative, credible and effective.
- NZ supports India's candidature for permanent membership in a reformed UN Security Council.
- Areas of strategic alignment: Both countries share common stance with respect to Nuclear Disarmament and Non-Proliferation; Anti-terrorism, advocating for concrete actions against UN-proscribed terrorist organizations; Open, inclusive, stable and prosperous Indo-Pacific upholding rules-based international order and China's growing influence in the Indo-Pacific.
- NZ identified India as a priority country in its 2011 "Opening Doors to India" policy.
- Safety and Contribution of Indian Diaspora: India is the largest source of skilled migrants and 2nd largest source of international students in NZ.
- Green energy partnership: E.g., NZ became a member of the India led International Solar Alliance (ISA) in 2024.
- Close sporting links: Particularly in cricket, hockey and other Olympic sports.
- 'Sporting Unity' events have been planned in 2026, to recognise and celebrate 100 years of sporting contact between India and New Zealand.
Challenges in bilateral relations
- Long Delayed FTA: Despite 10 negotiation rounds (2010–2015), the India-NZ FTA remained stalled due to structural economic differences, particularly over dairy exports and agricultural tariffs.
- India's dairy industry expresses concern over potential disruption from New Zealand's milk producers, as FTA discussions could open the sector to foreign competition, impacting domestic prices.
- Security concerns: India has raised its concern over anti-India activities in New Zealand including protests and a Khalistan referendum held by the 'Sikhs for Justice' group.
- Other concerns: Low bilateral trade reflects untapped potential; New Zealand's strong trade ties with China etc.
Conclusion
Both countries should aim for an FTA that addresses sensitivities of Indian industries while providing reciprocal benefits. Establishing a bilateral task force can help in addressing sensitive issues like separatist movements while ensuring respect for democratic freedoms and lawful protests. Further, regular high-level discussions on geopolitical issues like China's influence can align their approaches to regional stability.
