New Zealand-India relations: a step forward.

• Author: Sharma, Ashok

Today India is the fastest growing major economy in the world. And with its growing economic, military and political influence, it has emerged as a major player in the international system. After staying on the periphery of international politics for decades, India is now attracting global attention. Having begun to realise its potential as a significant power, it is no longer a mere observer of the actions of other global players. Over the past two decades, India has taken resolute steps to look outward and engage with the world on the economic, strategic and political fronts.

Without the burden of Cold War era ideological baggage, India has sought to exploit the most flexible international context to have prevailed in the past two decades. It has adopted a deliberate policy of engaging and enhancing bilateral ties with all the key global players. In doing so, New Delhi has taken a more pragmatic approach to its foreign policy and, while retaining its strategic autonomy, has moved closer to the US-led 'Political West'. But one of the striking features of its external engagement has been increasing economic, political and strategic engagement with the Asia-Pacific region/Indo-Pacific region, a process that began in the 1990s as India's 'Look East Policy'.

Now this eastward engagement is being pursued more actively under Narendra Modi's government as an 'Act East Policy'. The Modi-led Bharatiya Janata Party came to power with a thumping majority in the 2014 general election on the promise of fixing the economy and achieving for India 'a rightful place in the world'. In pursuit of that, an economics-driven foreign policy has become the hallmark of Modi's administration. This is evident in his high-profile, well-choreographed foreign visits, which have seen him cutting trade and energy deals as well as deepening defence and security ties with likeminded countries.

However, despite Modi's numerous overseas visits and his focus on economic engagement, India-New Zealand relations have not been able to achieve any momentum. This notwithstanding the fact that both nations share many common factors, such as their Commonwealth legacy, values and principles of democracy; diffusion of liberal political and economic values; the presence of a sizeable Indian diaspora; and contributions to the global commons, such as protection of both sea lanes of communication and the rules-based international order. (1)

Positive developments

Despite positive developments in the last two decades, the overall New Zealand-India bilateral relationship remains underachieved. In recent years, mutual efforts to enhance that relationship have focused on trade, tourism, education, leveraging the Indian diaspora's potential as a bridge between the two nations and on-going free trade negotiations. However, the progress on the much talked about free trade agreement has been slow, and strikingly New Zealand has so far been missing from Modi's foreign policy radar. Modi is widely recognised as having an active foreign policy agenda, as evident in his record number of overseas visits. Notably, New Zealand was not on the itinerary during his last sortie to the region, in 2014, when he visited Australia and Fiji, clearly suggesting that strategic interests took priority over economic interests in the region. Despite missed opportunities, the two countries' prime ministers have met several times on the sidelines of international forums. Moreover, during Modi's incumbency an Indian president, Shree Pranab Mukherjee, for the first time made a state visit to New Zealand.

John Key's visit to India from 24-27 October 2016 is a positive step that will give much-needed momentum to the New Zealand--India relations. It follows his previous visit in 2011. A high-level business delegation, trade negotiators and parliamentarians accompanied him. During his meeting with Modi, Key touched on a range of issues affecting bilateral relations. Both leaders emphasised the shared values of democracy, cultural and sporting ties and people-to-people contacts that have been developing mainly because of the presence of a significant Indian diaspora in New Zealand.

After fruitful talks, India and New Zealand concluded three agreements, including one on avoidance of double taxation and another on prevention of fiscal evasion with respect to taxes on income. Foreign minister-level dialogue will be established. There were also exchanges on cyber issues. (2) Emphasising the strength of the relationship, the two leaders had extensive and productive discussions on all aspects of bilateral and multilateral co-operation. However, Key's visit can be seen in the context of three main issues:

* economic ties with a focus on the free trade agreement

* New Zealand's stand on India's inclusion in the Nuclear Suppliers Group (NSG)

* Indo-Pacific strategic issues and security issues, mainly terrorism, and including the issues related to the Indian diaspora in New Zealand.

Economic ties

During Key's India visit, economic issues, especially the free trade agreement with India...