Context: Working closely with India on defence, security matters: New Zealand Deputy PM

Source: The Hindu

New Zealand has begun to collaborate “more closely” with India in the areas of security and defense in the current period of “great uncertainty.”

For New Zealand, freedom of navigation in the Indo-Pacific area is essential. Closer ties between the forces will be made possible under a recently signed Defense Cooperation Arrangement.

Leading Combined Task Force 150, the New Zealand Navy is tasked with protecting commercial routes and combating piracy, terrorism, and smuggling in the Gulf of Aden and Indian Ocean.

In the areas of economy and security, New Zealand has refocused its foreign policy, and it is now paying much more attention to South and Southeast Asian resources.

Model Question:

“India–New Zealand relations, though cordial, have yet to reach their full potential in terms of strategic and economic engagement.”

Model Answer:

India and New Zealand have shared friendly diplomatic ties since the establishment of relations in 1952. Both countries are members of the Commonwealth, and their relationship is rooted in shared democratic values, rule of law, and a commitment to multilateralism. However, despite this cordiality, the depth of strategic and economic engagement remains limited.

Strategic Engagement:

1. Political and Diplomatic Ties: Regular high-level visits (e.g., Prime Ministers Jacinda Ardern and Narendra Modi met on multilateral platforms like East Asia Summit). India and New Zealand cooperate on global issues such as climate change, counter-terrorism, and UN reforms.
2. Defence and Security: Defence relations are minimal, mostly limited to training exchanges and goodwill naval visits. Lack of substantive military cooperation or joint exercises. Geographic distance and differing strategic priorities have hindered deeper ties.
3. Multilateral Forums: Collaboration in multilateral bodies like the United Nations, East Asia Summit, and International Solar Alliance. New Zealand supports India’s bid for a permanent seat in the UN Security Council.

Economic Engagement:

1. Trade and Investment: Bilateral trade stood at around USD 2.5 billion (2023–24), which is modest. Major exports from India: pharmaceuticals, machinery, textiles. From New Zealand: dairy products, wool, wood, and wine.
2. Free Trade Agreement (FTA): India and New Zealand have been negotiating a Free Trade Agreement under the India–New Zealand Trade and Economic Cooperation Agreement (INZTEC) framework. Talks remain stalled, especially due to India’s sensitivity to dairy imports.
3. Services and Migration: Around 240,000 people of Indian origin live in New Zealand, contributing significantly to its education, IT, and hospitality sectors. Indian students form a sizable group in New Zealand’s education system.

Challenges in the Relationship:

1. Geopolitical Distance and limited strategic overlap.
2. Agricultural Trade Sensitivities – India’s concerns about opening dairy markets.
3. China Factor – New Zealand’s economic dependence on China creates subtle divergences.
4. Low Prioritization – India focuses more on Indo-Pacific powers like Australia, Japan, and ASEAN nations.

Recent Developments and Opportunities:

1. Post-COVID cooperation on supply chains and health diplomacy.
2. Indo-Pacific Synergy: New Zealand’s increasing Indo-Pacific engagement opens avenues for maritime cooperation.
3. Education and Skill Mobility: Possibility of skill-based migration agreements.
4. Climate Change Collaboration: Both countries are committed to renewable energy and sustainable development.

India–New Zealand relations are friendly but underleveraged. While trade, education, and people-to-people ties have grown, strategic engagement and high-value economic cooperation remain limited. Going forward, both nations must recalibrate their relationship in the context of the Indo-Pacific dynamics and global challenges such as climate change and resilient supply chains.