India and New Zealand on March 17th 2025, signed a landmark Defence Cooperation Agreement, marking a new phase in their bilateral ties. Alongside this, they have revived Free Trade Agreement (FTA) negotiations and signed multiple cooperation pacts in customs, horticulture, education, sports, and forestry. These developments build upon a long history of diplomatic and economic engagement between the two nations.
Historical Relations
India and New Zealand share a long-standing relationship rooted in historical ties, Commonwealth membership, and people-to-people connections. New Zealand was among the first countries to establish diplomatic relations with India after its independence in 1947. Over the years, the partnership has evolved through trade, cultural exchange, and cooperation in global forums such as the United Nations, Commonwealth, and WTO.
Key Highlights of Past Relations:
- Trade & Economy: Bilateral trade between the two countries has grown steadily, reaching $1.7 billion in 2023-24. However, trade relations have remained limited due to market access barriers and regulatory differences.
- Defence & Security: India and New Zealand have previously collaborated in maritime security and peacekeeping efforts, including India’s participation in Command Task Force-150, led by New Zealand.
- Education & Migration: New Zealand has been a popular destination for Indian students, with over 30,000 Indian students enrolling in New Zealand institutions annually.
- Sports & Culture: Cricket has been a major cultural connector, with both nations sharing a rich cricketing rivalry. Additionally, the Indian diaspora in New Zealand, numbering around 240,000, plays a crucial role in strengthening ties.
New Defence & Economic Agreements
1. Defence Cooperation Agreement
This agreement institutionalizes regular defence engagements, including joint training exercises, maritime security cooperation, and intelligence sharing. The focus will be on strengthening security in the Indo-Pacific region, particularly in countering piracy and ensuring safe maritime trade.
2. Revival of Free Trade Agreement (FTA) Talks
After more than a decade, India and New Zealand have relaunched negotiations for an FTA to enhance trade, investment, and economic cooperation. The agreement aims to reduce tariffs, improve market access, and streamline regulatory frameworks in sectors such as agriculture, digital trade, and services.
3. Additional Bilateral Agreements
- Mutual Recognition Agreement (AEO-MRA): A customs agreement to simplify trade procedures.
- Horticulture Cooperation: Collaboration on advanced agricultural practices.
- Education Partnership: Strengthening educational ties and student exchanges.
- Sports & Youth Cooperation: Promotion of sports and youth development initiatives.
- Forestry Collaboration: Joint research and sustainability initiatives.
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