India-New Zealand Relations

GS2 – International Relations

Context:

During New Zealand PM Christopher Luxon’s first official visit to India for the Raisina Dialogue, both leaders discussed key areas of bilateral cooperation.

Historical Linkages Between India and New Zealand

• Early Indian Settlers: The first wave of Indian migration to New Zealand began in the 1850s, particularly in Christchurch.
• Military Ties: Indian soldiers fought alongside ANZAC troops (Australia and New Zealand Army Corps) in the Gallipoli Campaign (1915) during World War I.
• Diplomatic Relations: Established in 1950, evolving into a High Commission later.
• Common Interests:
  • Shared democratic values, Commonwealth membership, and similar legal frameworks.
  • Tourism & Sports: Cricket, hockey, and mountaineering have strengthened ties.
• Strategic Engagements:
  • “Opening Doors to India” (2011) policy emphasized trade & investment.
  • “India-NZ 2025 – Investing in the Relationship” (2020) aims to expand cooperation.

Trade and Economic Cooperation

• Bilateral Trade (2023-24): USD 1.75 billion.
• India’s Exports to NZ: Pharmaceuticals, mechanical machinery, textiles, gems & precious metals.
• India’s Imports from NZ: Wool, iron & steel, fruits & nuts, aluminum.
• FTA Negotiations: Resumed after a deadlock in 2015 over dairy & agriculture disputes. Key focus areas:
  • Dairy & Food Processing
  • Pharmaceuticals
  • Renewable Energy
  • Critical Minerals
• Customs Cooperation Agreement (2024): Signed to boost trade & combat organized crime.
• Skilled Worker Mobility: Addressing illegal migration while formalizing labour exchange programs.

Defence and Security Cooperation

• Institutionalized Military Ties: MoU signed for deeper defense cooperation.
• Naval Engagement: Indian Navy ships INS Sahyadri & INS Kolkata (2023) and INSV Tarini (2024) visited NZ.
• Security Focus:
  • Countering China’s expansionism in the Indo-Pacific.
  • Addressing Khalistani separatist threats.
• Joint Task Force: India contributes staff to CTF-150 (Combined Task Force), led by the Royal New Zealand Navy (Jan 2025).

Counterterrorism Cooperation

• Joint Stance Against Terrorism:
  • Referenced the 2019 Christchurch attack and 2008 Mumbai attacks.
  • Commitment to curb terror financing and dismantle terrorist networks.

Indo-Pacific and Global Diplomatic Cooperation

• Indo-Pacific Security: New Zealand joined India’s Indo-Pacific Oceans Initiative.
• Maritime Rules: Both nations stress freedom of navigation and adherence to UNCLOS (1982).
• Geopolitical Stance: Shared views on:
  • Ukraine war
  • Two-state solution for Gaza conflict
• UNSC Reforms: New Zealand supports India’s bid for a permanent seat.
• Diplomatic Expansion: New Zealand increased its diplomatic presence in India by over 60%.

Cultural and People-to-People Relations

• Indian Diaspora in NZ: ~250,000 people, the third-largest ethnic group.
• Education & Student Exchange:
  • India is the 2nd-largest source of international students in New Zealand (~8,000 students).
  • Fields: IT, hospitality, science, engineering, and architecture.
• Cultural Engagements:
  • Indian festivals like Diwali, Holi, Baisakhi, Onam are widely celebrated.
  • NZ schools offer courses in Kathak, Bharatnatyam, Bollywood dance & Hindi.
• Sports Diplomacy:
  • Celebrating 100 years of sporting ties in 2026.
  • Player exchange programs in cricket, hockey, and rugby.
• Tourism & Cultural Cooperation: Strengthening travel and tourism ties.
• Mountaineering Legacy: Sir Edmund Hillary, a national hero in NZ, is revered in India for his Everest expedition with Tenzing Norgay (1953).

Challenges in India-New Zealand Relations

Market Access Disputes:

• India withdrew from RCEP (2019) over unfair market access concerns.
• NZ seeks better access to India’s dairy market, while India remains protective of its dairy industry.

Tariff Barriers:

• India’s average import tariff (17.8%) vs. New Zealand’s low tariff (2.3%).

Skilled Worker Issues:

• India wants better work opportunities for IT professionals in NZ.
• New Zealand hesitant to offer access similar to Australia & China.

Anti-India Activities in NZ:

• PM Luxon assured action against illegal groups operating within NZ.

About New Zealand

• Island Nation: Comprises two major islands (North & South) and smaller ones.
• No Land Borders: Australia is its nearest neighbor (1,600 km northwest).

Geopolitical Position: Part of Australasia & Polynesia, bordered by the Tasman Sea & Pacific Ocean.