Hipkins warns of 'potential consequences' of NZ, India partnership

Labour Leader Chris Hipkins is welcoming the Strategic Partnership agreed to by New Zealand and India but says there will be consequences if New Zealand does not fulfil its side of the deal.

By Tuwhenuaroa Natanahira for RNZ

Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi met in Auckland on Saturday to unveil the Roadmap to 2030, a list of commitments to strengthen the relationship of the two countries including a doubling of two-way trade and deepening maritime defence ties.

Hipkins told RNZ that "overall" the agreement was a positive step.

Luxon and Modi have announced a new Strategic Partnership and agreed to a roadmap aimed at doubling two-way trade by 2030. (Source: 1News)

"How we develop that, what the detail we put around that looks like is going to be pretty important from here, but overall a closer relationship between New Zealand and India can only be a good thing for New Zealand".

Yesterday Luxon had to again bat away concerns over a clause in the India Free Trade Agreement (FTA) requiring the government to "promote" investment in India, despite his Indian counterpart calling it a "commitment".

Speaking in Hindi, Modi thanked the New Zealand government for its "commitment" to NZ$34.7b of private investment in India within 15 years.

However, Luxon said the FTA included a "commitment to promote" investment and the issue was "clearly understood on both sides".

PM Christopher Luxon has assured there were no misunderstandings between the wording of agreements. (Source: rnz.co.nz)

Hipkins said that investment had been a "long-standing discrepancy" in the FTA and the way India perceived the clause was "quite different" from how New Zealand saw it.

"That's something that New Zealand exporters doing business in India need to be eyes wide open to."

"India sees that as a firm commitment on New Zealand's behalf to invest $20 billion in India over the next 15 years, whereas the New Zealand government simply views that as a commitment to promote investment in India, that is a real discrepancy."

He said there were "potential consequences" for New Zealand that could play out in future years and New Zealand businesses needed to keep an eye out.

Hipkins got the chance to speak with Modi and told RNZ the conversation was "very warm" and "very useful".

"We talked about the importance of the New Zealand-India relationship and how we needed to do some more work to grow it and we reflected on the fact that quite a lot of progress has been made in the last three years."

"We highlighted some of the emerging opportunities such as direct flights between the two countries, something I think we both like to see, and the potential for New Zealand to continue to share knowledge, expertise and enterprise within India." he said.

Hipkins has criticised Peters' and Luxon's foreign affairs efforts. (Source: Getty)

One notable absence from yesterday's formal meetings was Foreign Affairs Minister Winston Peters, who was away in Singapore and Japan.

Hipkins said Peters' absence was "unfortunate" and it seemed like Peters and Luxon had "quite different views" on international issues.

"It doesn't further our reputation around the world, it makes it difficult for our international partners to figure out actually what does New Zealand think on a range of issues.

Supporters packed Spark Arena to celebrate the Indian prime minister's first visit to New Zealand, while protesters demonstrated outside.

The figure, equivalent to 8.6% of total GDP in the year to March 2025, comes from a report by Infometrics.

"I hope that in the future we can get back to having one New Zealand government when it comes to international relationships, not multiple governments, which is what we seem to have at the moment."

Prime Minister Modi left Auckland on Saturday night after attending a speaking event at Spark Arena.