Counterterrorism in spotlight after Modi’s whirlwind visit

New Zealand has agreed to set up a joint working group on counterterrorism with India in a bid to strengthen cooperation in combating terrorism and violent extremism, as well as institutionalise intelligence exchange.

In a joint statement released Saturday, the two countries called for "a zero-tolerance and consistent approach to terrorism" that sought to disrupt terrorism financing networks and safe havens, dismantle terrorism infrastructure and bring perpetrators of terrorism to justice swiftly.

It was one of several notable outcomes of Indian Prime Minister Narendra Modi's 24-hour visit to New Zealand over Matariki weekend.

One of the world's political heavyweights, Modi, who has governed the world's largest democracy since 2014, landed in Auckland on Friday night.

After receiving a formal welcome at Government House on Saturday morning, Modi held bilateral discussions with Prime Minister Christopher Luxon, interacted with business leaders, acknowledged New Zealand's sporting excellence and attended multiple community events.

Breaking protocol, Luxon went to the airport to receive Modi as well as bid him farewell - a gesture that Modi said upon his arrival had deeply touched him.

In one of his speeches on Saturday, Modi highlighted the formation of the joint working group on terrorism.

"We have done this to fight against terrorism shoulder to shoulder," Modi said.

"Cooperation between India and New Zealand is of utmost importance for peace, stability and security in the Indo-Pacific."

Modi had previously aired concerns about "anti-India activities by some illegal elements in New Zealand" during Luxon's 2025 trip to India to resurrect talks over the free trade agreement.

While the Indian leader wasn't specific in his remarks, it is widely believed he was referring to the non-binding "referendum" on Khalistan that was organised in Auckland's Aotea Square in November 2024.

The event was organised by US-based separatist group Sikhs for Justice, which has been banned in India since 2019 for alleged terrorism links and for "propagating anti-national and separatist sentiments prejudicial to the territorial integrity and security of India", according to the Indian government.

Sikhs for Justice denies all terrorism charges, calling itself a human rights advocacy group.

Modi at that time expressed confidence the New Zealand government would act accordingly, but Luxon told media he would not be cracking down on the Khalistan movement, saying its supporters hadn't broken any laws in the country.

It remains to be seen how the joint working group on counterterrorism will tackle the issue when the two nations seemingly adopt different interpretations of what terrorism looks like.

Luxon and Modi announced Saturday that the ties between the two countries had now been elevated to a "strategic partnership".

In effect what this means is that New Zealand and India have agreed to work together on defence and security alongside expanding ties related to trade, commerce, education, tourism, sports and culture.

Meanwhile, Modi used his speech on Saturday evening at Auckland's Spark Arena to connect with the Sikh diaspora in the country.

He also highlighted "strong bipartisan support" for the trade deal, which he said remained "one of the defining strengths of our relationship".

Labour leader Chris Hipkins called on Modi in Auckland on Saturday evening, welcoming the elevation of ties between the two countries.

Hipkins, however, pointed out what he called a "long-standing discrepancy" in how the two countries perceived the US$20 billion ($34.7 billion) investment clause in the trade deal.

In his speeches throughout the day, Modi referenced the New Zealand government's "investment commitment of US$20 billion in India in the next 15 years" at least three times.

Modi reemphasised such sentiment in his address to business leaders from both nations on Saturday afternoon.

"This is not only a commitment to invest but also to be a partner in India's development journey," Modi said.

When asked by the media to clarify New Zealand's position, Luxon said the free trade agreement included a "commitment to promote investment", with the issue being "clearly understood on both sides".

Rudrendra Tandon, secretary east at India's Ministry of External Affairs and one of the South Asian nation's most senior diplomats, raised the issue again before media at Auckland's Cordis Hotel on Saturday evening.

"[We understand] there will be facilitation of this [$20 billion]," Tandon said.

"We have a large market. We are undertaking significant structural reforms. ...This is not an invitation just to invest [in India]. It is an invitation for a long-term partnership with India.

"It is really going to be facilitated. There is no specific penalty as such."

The Indian diplomat also addressed the issue of the free trade agreement leading to increased migration from India to New Zealand.

When asked whether such fears were misplaced, Tandon said, "I would say so".

"There is a lot of misunderstanding on the issue. [The] FTA is not an agreement for immigration," he said.

"Immigration and mobility of skilled manpower are two different issues altogether," he said.

"The commitments that were crafted in the FTA pertained to mobility of skilled manpower under the existing laws of New Zealand."

Tandon said the provision was included in the free trade agreement because India was an exporter of services.

"[Sometimes] our skilled personnel face visa issues which act as a de facto market barrier for them," he said.

"So, this time we did an innovation and ensured skilled manpower mobility. ... [The FTA] has nothing to do with immigration," he said.

Turning to business outcomes of the visit, the joint statement said the trade agreement sought to double bilateral two-way trade in goods and services to $7 billion by 2030.

Among other trade announcements, a Kiwifruit Action Plan was unveiled alongside the establishment of two centres of excellence in the Indian states of Nagaland and Uttarakhand.

The trade agreement excludes dairy (milk, cream, whey, yoghurt, cheese, etc), animal products (other than sheep meat) and vegetable products.

However, the two nations have concluded a memorandum of cooperation on animal husbandry and dairying.

The Indian government said the agreement would advance technical collaboration, knowledge and best practices exchange, hence benefitting dairy farmers and cattle rearers.

Recognising tourism's role in economic growth and cultural understanding, the two prime ministers encouraged airlines to commence direct nonstop flights between India and New Zealand.

The two leaders also welcomed celebrations marking a centenary of sporting ties between the two countries.

They also welcomed the launch of the India-New Zealand Joint Action Plan on Sport, which aims to promote exchanges in sports medicine, rugby, rowing, athletics, golf and bowls.

Sports Minister Mark Mitchell later announced matches between the national football teams of New Zealand and India to be held in November in Auckland and Christchurch as part of these celebrations.

Modi hailed the "unprecedented pace" of New Zealand-India relations in the past few years."

India and New Zealand's firm belief in democratic values provides us with natural comfort to move forward together," he said.

Luxon encouraged New Zealand businesses "to get on a plane and learn about the Indian market".

Extending greetings to Māori business leaders, Modi highlighted similarities between the two cultures.

"Both India's civilization and Māori traditions have a deep respect for nature, community and sustainability," he said.

"Opportunities for Māori businesses are also given a special place in our FTA. By combining these shared values, we can create a new model of inclusive and sustainable trade."

Modi also acknowledged the Māori New Year in one of the speeches he delivered during the afternoon.

"The constellation of stars, which is named Matariki here, has been known in India since ancient times as Krittika Nakshatra," he said.

"I am confident the festival of Matariki will inspire our relations to glow like these stars."