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Luxon’s India Innings Off To Promising Start

Written by Ravi Bajpai/ravi@indianweekender.co.nz | Mar 19, 2025 1:19:26 PM

“Where there is a will, there is a way.” Prime Minister Christopher Luxon has embodied this adage in his determined drive to deepen New Zealand’s engagement with India. His election promise to secure a Free Trade Agreement (FTA) with India in his first term was met with skepticism—some doubted the feasibility of the timeline, while even the most ardent India-watchers questioned whether New Zealand had the diplomatic muscle to make it happen. After all, the previous Labour government had kept relations with India at a diplomatic simmer for years. But Luxon’s recent visit to India has demonstrated that when ambition meets intent, doors open.

Luxon landed in New Delhi with one goal: to get New Zealand back in the game. Within hours, he had secured India’s agreement to negotiate a comprehensive FTA “as quickly as possible.” This is a significant breakthrough. It marks the first serious attempt since 2016—when negotiations collapsed—to bring both nations back to the negotiating table.

Notably, the language used in official communications this time is different. The two countries are “launching” talks, not “restarting” them. This is an implicit acknowledgment that past negotiations were flawed. The one-dimensional approach New Zealand took in earlier discussions—seeking trade concessions without offering much in return—did not sit well with India, which wanted a broader, more strategic partnership. Luxon appears to have learned from past mistakes. His rhetoric on this visit has been markedly different, emphasising a “broad, deep relationship” built on trust, which he believes will naturally pave the way for a trade agreement.

The shift in tone is not just diplomatic window dressing. Luxon has backed up his words with action. In addition to trade discussions, his visit facilitated the signing of multiple Memorandum of Understanding (MoUs) across key industries. These agreements span aviation, infrastructure, hospitality, technology, education, creative arts, agriculture, and corporate services. They signal a comprehensive approach to engagement—one that goes beyond just seeking market access for dairy and meat products and instead fosters long-term partnerships in diverse sectors.

Luxon’s urgency is clear. The past eight years have seen little progress, but he is determined to move with speed. His initial remark about striking a deal within 60 days may have been in jest, but his broader message is serious: this is not business as usual. He has set a firm goal of securing an agreement before the end of his term, and ideally, by the end of this year. This level of ambition is a stark contrast to the diplomatic inertia of previous years.

The stakes are high. India is on track to become the world’s third-largest economy by 2030. Its rapidly expanding middle class presents a lucrative market for New Zealand’s goods and services. At the same time, India’s booming technology sector and skilled workforce offer opportunities for New Zealand businesses seeking collaboration. For too long, New Zealand has treated India as an afterthought in its trade strategy, focusing heavily on China and traditional Western partners. Luxon’s visit signals a long-overdue course correction.

There will, of course, be challenges ahead. Negotiating a trade deal with India is no easy feat. The country has historically been cautious about FTAs, preferring to safeguard its domestic industries. The 2016 breakdown in negotiations serves as a reminder that enthusiasm alone is not enough—both sides will need to find common ground and make meaningful compromises. New Zealand, in particular, will have to offer a broader strategic partnership incorporating technology, education, and infrastructure cooperation will be key to sealing the deal.

That said, the momentum Luxon has generated cannot be overstated. His visit has re-energised bilateral ties and placed New Zealand-India relations on a new trajectory. The real challenge now is maintaining this momentum. Talks must progress swiftly, and New Zealand must demonstrate that it is serious about a long-term partnership. Luxon has taken the first crucial step, but the road ahead will require continued political will, creative diplomacy, and a genuine willingness to engage India on its own terms.

If Luxon can pull this off, it will be one of the defining achievements of his leadership. And for New Zealand, it will mark the beginning of a new era in its engagement with India—one based on mutual respect, shared opportunity, and, above all, a clear recognition that where there is a will, there is indeed a way.