India and New Zealand formalized their strategic partnership in New Delhi as PM Modi and PM Luxon signed a defense MoU, resumed FTA negotiations, and agreed on enhanced mobility for professionals. The initiatives significantly boost trade, strengthen defense ties, and deepen people-to-people connections, reinforcing historical bonds and Indo-Pacific security interests.
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Prime Minister Narendra Modi met with New Zealand counterpart Christopher Luxon in New Delhi.
India and New Zealand have formalized defense collaboration by signing a Memorandum of Understanding (MoU) to establish regular bilateral defense engagements, joint military training, naval exchanges, and high-level defense dialogues.
India and New Zealand have agreed to resume negotiations for a comprehensive Free Trade Agreement (FTA) to expand trade in various sectors, including agriculture, critical minerals, pharmaceuticals, and tourism.
Both leaders are working towards a mobility arrangement that will facilitate the movement of professionals and skilled workers between countries.
India and New Zealand's relationship dates back to the 1800s when Indian immigrants began settling in New Zealand.
Indian troops fought alongside Australian and New Zealand Army Corps (ANZAC) forces during the Gallipoli campaign in World War I.
Diplomatic relations were formalized in 1950 with the establishment of a Trade Commission in New Zealand, which was later upgraded to a High Commission in 1952.
Both countries work closely in multilateral platforms like the Commonwealth and United Nations (UN), and are committed towards global peace, disarmament, ecological preservation, and combating international terrorism.
Both support a stable Indo-Pacific region and uphold the principles of freedom of navigation under the United Nations Convention on the Law of the Sea (UNCLOS).
New Zealand considers India a priority in its foreign policy, as reflected in its "India-New Zealand 2025: Investing in the Relationship" strategy.
Economic ties
In the 2023-24 financial year, bilateral trade was valued at around US$1.75 billion.
|
Year |
Indian Imports from NZ (Goods) |
Indian Imports from NZ (Services) |
Total Imports |
Indian Exports to NZ (Goods) |
Indian Exports to NZ (Services) |
Total Exports |
Total Trade (US$ billion) |
|
2023 |
0.32b |
0.52b |
0.84b |
0.68b |
0.23b |
0.91b |
1.75b |
|
2022 |
0.36b |
0.18b |
0.54b |
0.77b |
0.21b |
0.96b |
1.50b |
|
2021 |
0.32b |
0.43b |
0.75b |
0.74b |
0.15b |
0.80b |
1.55b |
|
2020 |
0.34b |
0.60b |
0.93b |
0.51b |
0.26b |
0.74b |
1.67b |
|
2019 |
0.51b |
0.70b |
1.22b |
0.56b |
0.20b |
0.75b |
1.97b |
India's exports to New Zealand include pharmaceuticals, precious metals and gems, textiles, motor vehicles, and apparel, while imports from New Zealand consist of logs, forestry products, wool, and edible fruits and nuts.
People-to-people connections
There are 292,092 persons of Indian ethnicity in NZ. Around 70,000 persons are estimated to be Indian passport holders. Hindi is the fifth most spoken language in NZ.
Concluding FTA is a priority to boost bilateral trade. Both countries are focusing on diversifying trade and adding value to achieve a more balanced economic partnership.
Enhancing defense engagements through regular exercises and exchanges, promoting student mobility to strengthen educational ties, and expanding maritime collaboration for Indo-Pacific security are key focus areas.
Addressing visa and mobility issues for Indian students and skilled workers to further strengthen the bilateral relationship.
Source:
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PRACTICE QUESTION Q. Evaluate the economic potential of India-New Zealand relations considering the current trade balance and sectors for future growth. 150 words |
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