India–NZ Relations: A Push for Partnership, Not Just Trade

A couple of weeks after Minister Piyush Goyal’s visit to New Zealand, talk of a possible India–NZ Free Trade Agreement has begun to gather momentum again. His trip has prompted a fresh round of questions: Why now? What does each side actually want? And where could a renewed partnership realistically go next?

To explore these questions, we spoke with Ziena Jalil (left) Strategic Advisory Board Member at the NZ Asia Institute and a former New Zealand diplomat in India. Drawing on her deep experience across Asia and South Asia, she unpacks what makes this moment significant, what India looks for in its partners, and how New Zealand can approach this relationship with more ambition, trust and long-term thinking.

1. Minister Piyush Goyal’s visit to New Zealand earlier this month has renewed interest in a potential FTA with India. From your perspective, what makes this moment significant for both countries?

Minister Goyal’s visit needs to be viewed within the context of the deepening relationship between our two countries as evidenced by the number of senior level visits both ways in the last few years including the Indian President Droupadi Murmu’s visit last year, our Prime Ministerial delegation to India this year, as well as several visits by our Ministers for Foreign Affairs and Trade.

In an increasingly fragmented and contested world, partnering with India makes strategic sense. It is the world’s fastest growing large economy, has favourable demographics with a median age of around 29, growing domestic demand, high savings and investment rates, and a sustainable fiscal outlook. Combined with increasing digital sophistication, India presents both scale and momentum.

With the importance of an Indo-Pacific region that is stable, peaceful and prosperous, this is our opportunity to lean into a future-focused partner, not just a trading destination—and for India to engage a trusted like-minded country that brings agility, quality and values-alignment.

2. You’ve worked extensively in Asia and South Asia. What does New Zealand need to understand better about how India approaches partnerships — especially trade and education ties — to build real trust and momentum?

India works on ambition and scale. Its large domestic market means Indian partners expect “co-creation” not simply an “export what you have” attitude. Strategic alignment is vital. India is doubling down on technology, services, infrastructure, and innovation as engines of growth. New Zealand needs to show how we can support India’s ambitions for growth in these sectors.

Understanding of time horizons is important. While some quick wins can be made, India is more a market for big wins – and so you need to be ready to play the long game – build relationships and trust through phases and visible deliverables.

Indians take a multi-dimensional view of the world. A trade agreement isn’t just about the trade relationship. They look at how we engage and the strength of our relationships in other spheres as well – for example, people movement, science and technology, security and defence.

I cannot overstate the importance of the people and culture dimension. The Indian diaspora in New Zealand – our third largest ethnic group – play a significant role as connectors and cultural translators.

3. Beyond goods and tariffs, where do you see the strongest opportunities for collaboration — for example, in services, technology, sustainability, or vocational education?

India’s rising incomes, infrastructure expansion and urbanisation offer opportunities in agritech, food innovation and environmental services. India’s desire to build a sustainable and more efficient agriculture sector can be well supported by New Zealand know-how and technology. There is potential for collaboration in defence and aerospace.

The booming services sector lends itself to opportunities in ed-tech, fintech and data platforms. New Zealand companies like Valocity are engaging strongly in this area. Indian tech talent is already supporting a number of our businesses and there is potential for further collaboration. In tourism we often think simply about Indian tourists visiting us, but we can also support India’s plans for further developing its own tourism sector with innovation.

As India builds its workforce our vocational education providers can partner in training, upskilling and joint delivery rather than just “importing” students. Research collaboration in areas of mutual interest help strength the bilateral relationship as well as open up new avenues for commercial opportunities. Our wananga can also partner with India’s tribal universities for mutual growth.

This is not new either. About a decade ago we delivered the New Zealand – India Prime Ministers’ Education Initiative which amongst other things had a joint $1m fund for researchers from both countries to work on collaborative research, and sports scholarships for Indian students to study in New Zealand. Among the recipients were the “Everest twin sisters” Tashi and Nungshi Malik who went on to be excellent brand ambassadors for New Zealand.

The centenary of New Zealand and India sports engagement next year is an opportune time to leverage sporting ties across other areas of our relationship as well.

4. India is one of the fastest-growing economies in the world, and New Zealand often describes itself as “small but agile.” How can the two countries play to their strengths and complement each other in this deal?

New Zealand’s “small but agile” proposition means we can trial, adapt and scale innovations quickly. We bring credibility in quality, sustainability, education, and innovation. India brings scale, ambition, diverse domestic demand, a fast-growing middle class, and increasing technological prowess.

That gives New Zealand a large “playground” and many sectors which can provide test beds and launch pads for innovation and joint ventures. For example, NZ education institutions embed campuses or training hubs in Indian states; NZ green-ag solutions are adapted and scaled in Indian contexts; diaspora entrepreneurs link NZ SMEs with Indian manufacturing and services networks.

For New Zealand exporters and service providers, linking into India’s ecosystem also builds diversification and acts as risk mitigation. And for both nations, this is about strategic capacity-building, people-to-people linkages, sustainability and regional connectivity.

5. How can New Zealand’s focus on diversity, inclusion, and values-based leadership help shape a more people-centred trade relationship with India?

Engaging the Indian diaspora as active ambassadors and bridge-builders - their voice, networks and understanding of both cultures mean we can build trust and alignment far more quickly. This is also about community, not just commerce, and it was heartening to see the strong Indian community delegation which accompanied the Prime Minister on his visit to India this year.

The importance of maintaining values-based leadership brings transparency, sustainability, and respect for indigenous knowledge. That can resonate with Indian firms looking for global credibility and ethical partnerships.

Trade, too, becomes not just about “what we send across the border” but “who we build and how we build them”. For example, joint research in sustainability that co-empowers Indian and NZ teams, and entrepreneurial link-ups that value social impact. Both sides benefit when the trade relationship is built on mutual respect, trust, shared growth and inclusion.

6. Finally, what would success look like to you — not just in trade figures, but in how New Zealand and India see and engage with each other after this FTA?

New ways of working, new sectors of growth, and a strong platform for a shared future.

That would be seen through more diversified exports from New Zealand to India and more joint ventures/investments rather than simple export flows. Our people and institutional links will grow in depth and breadth with more student/exchange flows both ways, research collaborations, diaspora-led ventures, and co-branded innovation partnerships. Direct flights will empower the relationship.

And finally, we’d see a strategic mindset shift where New Zealand and India begin to think of each other not as buyer-seller but collaborator-co-creator and a trusted partner working together for a safer, more peaceful and prosperous region.

-Asia Media Centre