India-New Zealand Partnership Gets Big Boost With FTA, Closer Maritime Ties

(MENAFN- IANS) New Delhi, Sep 23 (IANS) The elevation of India-New Zealand ties to a“Strategic Partnership,” following Prime Minister Narendra Modi's visit to the country in July this year, was quickly followed by the ratification of the free trade agreement ( FTA) by New Zealand's Parliament, after which the two countries are moving towards their first bilateral naval exercise as part of the closer maritime cooperation, according to an article published by the Lowy Institute.

The FTA paves the way for both countries to expand trade and investment beyond the relatively narrow base that has characterised their economic relationship so far, while maritime cooperation is creating links to strengthen the bilateral defence ties.

The article highlights that New Zealand gives India a stronger connection to Oceania, extending the geographical reach of India's vision of a free, open, inclusive, and secure Indo-Pacific. This helps India to build an Indo-Pacific presence beyond the Quad through this network of bilateral partnerships.

Once fully implemented, the FTA will eliminate or reduce tariffs on about 95 per cent of New Zealand's exports to India, while Indian goods will receive duty-free access to New Zealand. The two countries have also set a target of doubling their bilateral trade to $4.0 billion by 2030. India provides New Zealand with access to a sizable and expanding market amid the tariff turmoil triggered by the USA's trade policy.

At the same time, New Zealand holds immense potential for India in a number of areas, including advanced research, education, investment, and agriculture and food technology. For New Zealand, closer ties with India add another major market to a trade portfolio still heavily concentrated around China and other traditional partners such as Australia and the US.

With India accounting for just 1.8 per cent of New Zealand's exports in 2025, the FTA is likely to substantially increase this percentage, the article observed.

The agreement to cooperate on maritime security, hydrography, logistics, and information exchange has opened the way for New Zealand to join the maritime-security pillar of India's Indo-Pacific Oceans Initiative. This gives two geographically distant countries practical ways to cooperate on issues such as maritime awareness, secure sea lanes, disaster response and wider security of commons, the article added.

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