India, New Zealand strengthen trade and maritime ties

India-New Zealand ties are gaining momentum after their elevation to a Strategic Partnership, ratification of a free trade agreement and moves towards the first bilateral naval exercise. The developments are expected to expand trade, investment and maritime-security cooperation

New Delhi: 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 followed by the ratification of the free trade agreement (FTA) by New Zealand’s Parliament.

The two countries are now moving towards their first bilateral naval exercise as part of closer maritime cooperation, according to an article published by the Lowy Institute.

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The FTA is expected to pave 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 bilateral defence ties.

The article highlighted 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 also helps India build an Indo-Pacific presence beyond the Quad through a 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 bilateral trade to $4 billion by 2030.

India provides New Zealand with access to a sizable and expanding market amid the tariff turmoil triggered by US trade policy.

At the same time, New Zealand holds potential for India in areas including advanced research, education, investment, 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 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 share, 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 the two geographically distant countries practical avenues for cooperation on issues such as maritime awareness, secure sea lanes, disaster response and wider security of the global commons, the article added.