NEW DELHI: Indian Prime Minister Narendra Modi and his New Zealand counterpart agreed on Monday to deepen their security and economic ties, as the two countries announced the revival of talks for a free trade agreement.
New Zealand Prime Minister Christopher Luxon is on a five-day visit to India with the biggest-ever delegation to accompany a Kiwi premier on a foreign trip, comprising officials, and community and business leaders.
Modi and Luxon met in New Delhi where they signed agreements on enhancing cooperation in defense, education and sports.
“We had detailed discussions on various aspects of our bilateral relations. We have decided to strengthen and institutionalize our defense and security partnership,” Modi said during a joint press briefing.
Their defense ties will include joint exercises and training, with plans for mutual cooperation in the sector’s industry, he added.
On Sunday, the two countries agreed to revive free trade negotiations that have been stalled for over a decade, following talks between New Zealand Trade and Investment Minister Todd McClay and his Indian counterpart, Piyush Goyal.
“It has been decided to start negotiations on a mutually beneficial Free Trade Agreement between the two countries,” Modi said.
“Mutual cooperation and investment will be encouraged in areas like dairy, food processing, and pharma. We have given priority to mutual cooperation in the areas of renewable energy and critical minerals.”
Bilateral trade between India and New Zealand stood at about $1.7 billion in the 2023-24 financial year.
“It is through trade that we can boost the economies of both our countries, providing more jobs and higher incomes for Kiwis and Indians,” Luxon said in a statement.
Indians are the biggest source of skilled migrants, the third-largest ethnic group and the second-largest source of international students in New Zealand.
“I think you’re seeing an Indian government that’s been incredibly generous and very, very welcoming to New Zealand, and it speaks to the way that they also want to deepen this relationship,” Luxon said.
“We have brought the biggest delegation that’s ever accompanied a Prime Minister … because we actually want to make this as big as it possibly can be, because the size of the prize is immense.
“And actually, what’s this all about? It’s about actually cashback into Kiwis’ pockets and we do that by growing our economy and expanding our trade opportunities.”
New Zealand is an “important component” of India’s Indo-Pacific policy, said Dr. Udai Bhanu Singh, former senior researcher at the Institute of Defence Studies and Analyses.
But strengthening ties with the Pacific country is likely part of Delhi’s ongoing efforts to broker trade deals with other nations after US President Donald Trump’s decision to impose reciprocal tariffs on imported goods from countries, including India.
“India is facing tremendous pressure from Trumpian policy of reciprocal tariffs and it would like to keep its options open as far as possible,” Singh told Arab News.
“Even though this coming together may have been precipitated by Trump’s tariff assertion, the fact is that New Zealand and India are finding common grounds to work on.”
