Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon on Friday upgraded bilateral relations to a 'strategic partnership', reflecting their shared democratic values, deep people-to-people links, and common interests in the Indo-Pacific region, according to an official statement.
Key areas of cooperation
The two leaders discussed a wide range of issues including trade, defence, counter-terrorism, climate change, and regional security. They emphasized the importance of a free, open, and prosperous Indo-Pacific and agreed to work closely on maritime security and connectivity projects.
The upgrade comes after years of steady engagement between the two countries. India and New Zealand have historically enjoyed warm relations, but the new strategic framework is expected to give a fillip to bilateral trade and investment. Bilateral trade currently stands at around $2.5 billion, with potential for growth in sectors like dairy, information technology, and renewable energy.
Trade deal prospects
While a free trade agreement (FTA) was not announced, both sides expressed willingness to explore an early harvest scheme to reduce tariffs on select goods. New Zealand has been keen on an FTA with India since 2010, but negotiations have faced hurdles over market access for dairy and agricultural products.
Luxon said, "India is a key partner for New Zealand in the Indo-Pacific. Today's announcement marks a new chapter in our relationship, built on trust and mutual respect." Modi added that the partnership would contribute to regional peace and prosperity.
Defence and security ties
On defence, the two countries agreed to enhance military-to-military cooperation, including joint exercises and intelligence sharing. They also discussed counter-terrorism efforts and pledged to combat extremism and radicalization.
The leaders also touched upon the situation in the Pacific Islands region, where both India and New Zealand are involved in development assistance. They agreed to coordinate their efforts to support sustainable development and climate resilience in the region.
People-to-people links remain a strong pillar of the relationship, with over 200,000 people of Indian origin living in New Zealand. The two sides welcomed initiatives to promote tourism, education exchanges, and skill development.
