The agreement, expected to be signed in New Delhi next week, has been hailed by the government as a “once in a generation” opportunity to access India’s vast market. However, coalition partner NZ First has withdrawn support, citing concerns that the deal could lead to an influx of more than 20,000 Indian migrants and require New Zealand to invest NZ$34 billion over 15 years.
Deputy leader of NZ First and Regional Development Minister Shane Jones said his party would “never accept” the agreement, insisting he would not support such an outcome despite criticism.
His remarks were strongly condemned by Indian community leaders and opposition figures, with Auckland Indian Association president Shanti Patel calling them “incredibly worrying,” and Labour MP Priyanca Radhakrishnan describing them as “outright racism.” Prime Minister Christopher Luxon distanced himself from the comments, calling them “unhelpful.” With NZ First opposing the deal, the government may now rely on the opposition Labour Party to pass the agreement in Parliament, though Labour has also raised concerns over the scale of the proposed investment.
