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UPSC CURRENT AFFAIRS – 18 March 2025

Home / UPSC / Current Affairs / India and New Zealand sign defence cooperation pact, to up maritime safety

India and New Zealand sign defence cooperation pact, to up maritime safety

Why in News:

India and New Zealand signed a Defence Cooperation Pact, initiated FTA negotiations, and strengthened counterterrorism and maritime security cooperation, reinforcing their strategic ties in the Indo-Pacific region.

Introduction

  • India and New Zealand have taken significant steps to enhance their bilateral cooperation in defence, trade, and security.
  • During the visit of New Zealand Prime Minister Christopher Luxon to India, both nations signed a Defence Cooperation Pact, initiated discussions on a Free Trade Agreement (FTA), and reaffirmed their commitment to combating terrorism and ensuring regional stability.
  • The visit underscores India’s growing strategic engagement in the Indo-Pacific and the expanding role of economic partnerships in shaping bilateral ties.

Defence and Maritime Security Cooperation

  • India and New Zealand signed a Memorandum of Understanding (MoU) on Defence Cooperation, aimed at institutionalizing regular defence engagements.
  • Both nations agreed on the importance of a free, open, and secure Indo-Pacific, reinforcing maritime security and the safety of sea lanes.
  • New Zealand welcomed India’s participation in the Combined Maritime Forces (CMF) and its engagement in Command Task Force 150, which works on maritime security.
  • Military cooperation includes:
    • Participation in military exercises
    • Exchange programs for defence staff colleges
    • Regular port visits by naval ships
  • The Indian naval vessel Tarini visited Lyttelton, Christchurch (New Zealand) in December 2024, and the Royal New Zealand Navy’s HMNZS Te Kaha is set to make a port call in Mumbai.

Strategic Significance:

  • New Zealand is part of the Five Eyes intelligence alliance, a key player in global security networks.
  • The agreement strengthens India’s security engagement in the Indo-Pacific, countering expansionist policies in the region.

Counterterrorism and Security Cooperation

  • Both leaders reiterated their commitment to fighting terrorism, condemning the Christchurch attack (2019) and Mumbai attacks (2008).
  • India and New Zealand agreed to:
    • Disrupt terrorist financing networks.
    • Dismantle terror infrastructure and online radicalization platforms.
    • Bring perpetrators of terrorism to justice swiftly.
  • Modi raised concerns about anti-India activities in New Zealand, urging stronger action against separatist and radical elements operating in the country.
  • New Zealand assured continued cooperation in tackling security threats.

Strategic Significance:

  • Strengthening bilateral and multilateral cooperation in security enhances regional and global counterterrorism efforts.
  • Helps address India’s concerns regarding terrorist financing and separatist movements abroad.

Negotiations for a Free Trade Agreement (FTA)

  • India and New Zealand agreed to launch FTA negotiations to enhance bilateral trade and investment.
  • The trade agreement aims to:
    • Expand mutual trade potential.
    • Encourage investment in dairy, food processing, and pharmaceuticals.
    • Facilitate greater market access for businesses in both countries.

Bilateral Trade Snapshot (2023-24):

  • Total trade: $1.75 billion
  • New Zealand exports to India: $0.84 billion (wool, iron & steel, fruits, nuts, aluminium).
  • India exports to New Zealand: $0.91 billion (pharmaceuticals, textiles, machinery, pearls, precious stones).

Strategic Significance:

  • Enhancing trade relations reduces reliance on other markets and strengthens economic ties in the Indo-Pacific region.
  • Addresses concerns over India’s dairy sector, a key negotiation point in previous trade discussions.

Migration and Skilled Workforce Mobility Agreement

  • Recognizing the positive contributions of the Indian diaspora, both countries agreed to:
    • Address illegal migration issues.
    • Ease mobility for skilled Indian workers.
    • Encourage Indian students and professionals in New Zealand.

Indian Diaspora in New Zealand:

  • Third-largest ethnic group in the country.
  • Largest source of skilled migrants.
  • Second-largest contributor to international student enrolments.

Strategic Significance:

  • Strengthening migration frameworks enhances people-to-people ties, boosting education and professional exchanges.
  • Supports India’s workforce mobility and employment prospects abroad.

Conclusion

  • The visit of New Zealand Prime Minister Christopher Luxon marked a new phase in India-New Zealand relations, with agreements on defence cooperation, counterterrorism, free trade, and workforce mobility.
  • Strengthening maritime security and economic partnerships aligns with India’s Indo-Pacific strategy, ensuring a rules-based international order.
  • Going forward, deeper collaboration in trade, security, and migration frameworks will enhance bilateral ties, benefiting both nations.

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