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​Navigating differences: On India-New Zealand ties  

22 Mar 2025
2 min

Geopolitical Shifts and India-New Zealand Relations

At the 10th Raisina Dialogue, New Zealand Prime Minister Christopher Luxon emphasized three key geopolitical shifts:

  • Replacement of rules with power.
  • Prioritization of security over economic considerations.
  • Transition from trade efficiency to protectionism and resilient supply chains among trusted partners.

Luxon suggested that despite size differences, India and New Zealand could be ideal partners, sharing democratic values and interests, particularly in the Indo-Pacific region.

Key Agreements and Initiatives

  • Signed a defence Memorandum of Understanding (MoU) to enhance military cooperation, staff college exchanges, and naval port calls.
  • Agreed to restart talks on a free trade agreement to expand bilateral trade, currently under $2 billion.
  • Challenges noted in market access for dairy and agricultural products.
  • Air India and Air New Zealand signed a codeshare agreement, potentially introducing direct flights by 2028.

Trade and Strategic Concerns

New Zealand's trade with China is approximately $24 billion, posing broader strategic concerns. India had exited the Regional Comprehensive Economic Partnership (RCEP) partly due to market access issues.

Political Tensions and Community Dynamics

Prime Minister raised concerns about "anti-India activities" in New Zealand, referencing protests and a Khalistan referendum in Auckland. New Zealand police deemed these protests lawful, underscoring their commitment to free expression. Luxon emphasized the importance of not importing foreign political conflicts into immigrant communities.

Conclusion

Despite challenges, India and New Zealand have the potential for increased collaboration in trade, defence, and regional stability as democracies "book-ending" the Indo-Pacific. Sensitive issues should ideally be addressed through private diplomatic channels to avoid overshadowing strategic and economic ties.

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