Navigating differences: On India-New Zealand ties.
India and New Zealand stand to benefit from greater collaboration.
At the 10th edition of the Raisina Dialogue, visiting New Zealand Prime Minister Christopher Luxon — the conference’s chief guest — outlined three major geopolitical shifts shaping the world: the replacement of rules with power, the rise of security over economic considerations, and a move from trade efficiency to protectionism and resilient supply chains among trusted partners. In this context, Mr. Luxon suggested that India and New Zealand, despite their size disparity, could be ideal partners. Both democracies share an interest in ensuring freedom of navigation in the Indo-Pacific. While New Zealand is not part of the Quad (Australia, India, Japan, the United States) and does not seek membership, Mr. Luxon noted the ongoing dialogue among New Zealand, Australia, Japan and South Korea on regional issues. Following talks with Prime Minister Narendra Modi, the two countries signed a defence Memorandum of Understanding (MoU) to enhance military cooperation, staff college exchanges, and naval port calls. They also agreed to restart talks on a free trade agreement, aiming to expand their modest bilateral trade, currently under $2 billion. However, challenges remain, particularly around market access for dairy and agricultural products, which contributed to India’s decision to exit the Regional Comprehensive Economic Partnership (RCEP), of which New Zealand is a member. In contrast, New Zealand’s trade with China stands at approximately $24 billion, despite broader strategic concerns. Connectivity between the two nations received a boost, with Air India and Air New Zealand signing a codeshare agreement that may also lead to the first direct flights between the countries by the end of 2028.
Despite the positive tone, Mr. Modi voiced concern over “anti-India activities by certain illegal elements” in New Zealand, referencing protests and a Khalistan referendum held by the ‘Sikhs for Justice’ group in Auckland last November. Although previously discussed between the Foreign Ministers, New Zealand police had ruled the protests to be lawful. In response, Mr. Luxon reaffirmed New Zealand’s commitment to free expression and noted the importance of not importing foreign political conflicts into its diverse immigrant communities. While such concerns are legitimate, raising them publicly risks deepening divisions within the 3,00,000-strong Indian diaspora and overshadowing growing strategic and economic ties. These sensitive issues may be better handled through diplomatic engagement in private. Ultimately, India and New Zealand stand to benefit from greater collaboration — particularly in trade, defence, and regional stability — as two democracies that “book-end” the Indo-Pacific