New Zealand is gearing up to send one of its largest prime ministerial delegations to India next week in a strategic move to enhance trade and security relations with the rapidly growing economic powerhouse.
Prime Minister Christopher Luxon announced the upcoming four-day visit to Delhi and Mumbai during his post-Cabinet media briefing, with departure scheduled for Saturday.
During the trip, Luxon will engage in discussions with Prime Minister Narendra Modi and deliver the opening address at the Raisina Dialogue, India’s premier defense and security forum.
Luxon emphasized the importance of broadening New Zealand’s relationship with India, highlighting its status as the world’s most populous country and projected third-largest economy by 2030.
“India is a key player on the global stage, ranking fourth in military expenditure. With a fast-growing middle class, there are significant trade opportunities to explore. Currently, only 1.5 percent of our exports are directed towards India,” Luxon stated.
He acknowledged the challenges of building a relationship from scratch, noting that prior to the current government, relations with India were minimal.
While Luxon faces pressure to fulfill his promise of securing a free trade deal with India within his first term, he emphasized the broader goal of strengthening economic ties.
“My commitment is towards fostering a comprehensive economic partnership with India. Establishing momentum is crucial in advancing our trade relations,” Luxon explained.
The dairy sector poses a significant hurdle in trade negotiations, as seen in previous talks. India’s dairy industry, dominated by small-scale farmers, presents challenges for New Zealand exporters.
Despite the complexities, Luxon expressed willingness to explore alternative approaches, including a dairy-free deal similar to Australia’s strategy.
On the security front, Luxon underscored India’s alignment with New Zealand’s security interests in the Indo-Pacific region, particularly amid concerns over China’s assertiveness.
While New Zealand and India share common ground on security cooperation, differences may arise on issues like the conflict in Ukraine. Luxon affirmed New Zealand’s stance in support of Ukraine and indicated that the topic would be addressed in his discussions with Modi.
Luxon emphasized the potential for enhanced collaboration with India in defense exercises and visits, highlighting areas for further cooperation in the security realm.
As Luxon prepares for his visit to India, the focus remains on strengthening bilateral ties and exploring opportunities for mutual benefit in trade and security.
