India, New Zealand to build new connectivity links, shipping routes amid global tensions: Trade Minister McClay
Auckland, July 10
As the US-Iran tensions threaten the global supply chain once again, New Zealand's Minister for Trade and Investment, Todd McClay, said on Friday that New Delhi and Wellington are going to build new connectivity links, along with shipping routes being firmed up between the two nations.
In an interaction with IANS, McClay said, as we see a flare-up in the Middle East again, "we would like peace to be there and issues to be worked out around the negotiating table".
He further stated that a free trade agreement (FTA) creates greater certainty.
"There are always challenges to supply chains and the ability to get resources. But what India and New Zealand have said is that we're going to build those links between each other. I think you'll see shipping routes firm up and increase between India and New Zealand," McClay told IANS.
Bilateral trade between the two countries has been growing steadily in recent years, and the FTA aims to boost it further and turn their relationship into a stronger and longer-term strategic partnership.
Total trade increased from about $900 million in 2019-20 to $1.3 billion in 2024-25.
India's exports rose sharply from $379 million to $711 million, while imports from New Zealand grew more moderately from $522 million to $587 million.
McClay further informed that Air New Zealand is going to open three offices in India to start promoting air links.
"Air India and Air New Zealand have just asked for permission in New Zealand from our commerce regulator to be able to cooperate for flights. So, as the rest of the world creates some uncertainty, the free trade agreement allows India and New Zealand to cooperate even more to build reliance upon each other," McClay told IANS.
The FTA, signed on April 27 this year, removes tariffs on 100 per cent of India's exports to New Zealand, and either sharply reduces or removes tariffs on 95 per cent of the country's imports from New Zealand.
— IANS
Reader Comments
While this sounds promising on paper, I hope the FTA actually benefits our small farmers and exporters on ground. The tariffs removal is good, but we must ensure Indian dairy products and agriculture aren't overwhelmed by New Zealand imports. Need to protect our local industry too.
Great to see India and NZ deepening ties. The shipping route news is especially interesting given the current global tensions. India is emerging as a key player in the Indo-Pacific, and partnerships like this will help stabilize supply chains. Exciting times!
The numbers tell a story - India's exports to NZ have nearly doubled while imports grew modestly. That's a trade surplus in our favor! 👍 The FTA and air connectivity will only boost this further. Plus, Air New Zealand opening offices here means more jobs and tourism. Win-win!
As someone who studies global trade, this is a smart move. With US-Iran tensions threatening traditional shipping lanes, India and NZ are future-proofing their supply chains. The FTA creating certainty is key - businesses need stable conditions to invest.
Honestly, while this is good for trade, I'm a bit skeptical about the "strategic partnership" angle. The Middle East tensions are a reality, but are these new routes actually feasible in the short term? Infrastructure and logistics take years to build. Let's see some concrete action before celebrating.
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