India and New Zealand share a long-standing and cordial relationship, with diplomatic ties that stretch back to 1950. Initially established as a Trade Commission, the relationship was later upgraded to a High Commission in 1952. Over the decades, the two nations have worked to overcome geographical distance, fostering cooperation across various sectors, including trade, education, culture, and technology. This evolving partnership reflects their commitment to global peace, security, and prosperity.
Strengthening Economic Ties
As the world’s fifth-largest economy and its most populous country, India plays an increasingly significant role in New Zealand’s trade landscape. Recognizing the strategic importance of India, New Zealand has actively sought to deepen its economic relationship with the South Asian giant. Both nations have realized the vast potential for collaboration across key sectors, which was a focal point of the 11th Joint Trade Committee (JTC) meeting held in April 2024.
The meeting highlighted areas like agriculture, food processing, forestry, pharmaceuticals, and logistics, demonstrating mutual interest in creating a comprehensive economic framework. Notably, discussions around the improvement of supply chain logistics for kiwi fruit and enhancing India’s dairy sector were key topics, showing New Zealand’s intent to expand its agricultural exports to India. This effort aligns with India’s focus on improving perishable goods’ quality, storage, and transportation facilities.
Addressing Trade Barriers and Exploring New Agreements
One of the main outcomes of the JTC meeting was the commitment to addressing existing trade barriers, including non-tariff barriers (NTBs) and sanitary and phytosanitary (SPS) measures on products such as grapes, okra, and mangoes. Both countries pledged to resolve these issues through constructive dialogue, leveraging the existing JTC framework to overcome impediments and smoothen trade flows. The possibility of signing a Mutual Recognition Arrangement (MRA) for organic products, which would simplify trade certifications and approvals, was also discussed. Additionally, streamlined vehicle approvals for export markets were raised, indicating broader areas of engagement beyond traditional agricultural products.
High-Level Diplomatic Engagements
Political engagement and high-level visits have been critical in solidifying India-New Zealand relations. The visit of Indian President Droupadi Murmu to New Zealand in August 2024 underscores the importance of this partnership. Her visit followed that of New Zealand’s Deputy Prime Minister Winston Peters in March 2024, further signaling both nations’ commitment to strengthening their ties.
New Zealand has also made concerted efforts to push its economic agenda with India, with New Zealand’s High Commissioner to India, Patrick Rata, playing a vital role in advancing the dialogue. His engagement with Indian government officials and business leaders has aimed to further bilateral trade and collaboration across sectors such as defense, education, and cultural exchange. The India New Zealand Business Council (INZBC) has also been instrumental in promoting cross-border partnerships, especially in areas like animal health, horticulture, and climate technology.
New Zealand’s “Opening Doors to India” Policy
Launched in 2011, New Zealand’s “Opening Doors to India” policy aimed to secure a Free Trade Agreement (FTA) with India, seeking to deepen trade and investment ties between the two nations. Both countries recognize the mutual benefits of increased trade, and informal discussions have continued in the hopes of reviving formal FTA talks.
The Role of the Indo-Pacific Economic Framework for Prosperity (IPEF)
India and New Zealand’s partnership has gained further strategic depth through their involvement in the Indo-Pacific Economic Framework for Prosperity (IPEF), which was launched in 2022. IPEF is a multilateral platform aimed at strengthening regional economic cooperation and enhancing trade, supply chains, and sustainability initiatives. India’s participation underscores its importance in shaping the Indo-Pacific order, as the region accounts for over half of India’s exports.
In June 2024, India and New Zealand took part in a ministerial meeting in Singapore, where critical agreements such as the Fair Economy Agreement and the Clean Economy Agreement were signed. These agreements are set to further enhance cooperation on climate technology, sustainable infrastructure, and supply chain resilience. New Zealand, with its strong presence in the climate tech space, is well-positioned to collaborate with India, which is rapidly scaling up its clean energy and green technology sectors. New Zealand’s Climate Change Minister Simon Watts, who signed the Clean Economy Agreement, highlighted the importance of this partnership for achieving global sustainability goals. For India, a growing market for clean energy, collaboration with New Zealand’s top climate tech companies presents an opportunity to bolster its green infrastructure, helping meet its ambitious climate targets.
Cooperation Beyond Trade: Education and Culture
In addition to trade and economic ties, India and New Zealand have developed deep bonds in education and cultural exchange. New Zealand has become a popular destination for Indian students, with thousands pursuing higher education in fields ranging from business management to engineering. New Zealand universities and educational institutions have increasingly engaged in student exchange programs, research collaborations, and skill development initiatives with Indian counterparts.
Culturally, the Indian diaspora in New Zealand plays a significant role in fostering people-to-people connections. With a vibrant community, Indian festivals such as Diwali are celebrated widely across the country. New Zealand’s cultural engagement with India is also reflected in its support for Bollywood films, which enjoy a significant following among New Zealanders. Similarly, New Zealand’s rich Maori culture has found resonance with Indian communities, with increasing efforts to share and celebrate Indigenous knowledge and traditions.
As India continues to rise on the global stage, New Zealand sees significant strategic opportunities in enhancing its partnership with the South Asian power. The Indo-Pacific Economic Framework and continued bilateral engagements will serve as critical platforms for advancing this relationship. Whether through sustainable technology, agriculture, or education, India and New Zealand are poised to deepen their ties in the years to come, building a comprehensive and dynamic strategic partnership. With ongoing high-level dialogues and a shared interest in regional stability, India and New Zealand’s relationship is entering a new phase of growth, promising mutual benefits for both nations in a rapidly evolving global landscape.
