By Patrick Gower
The talks between John Key and Indian Prime Minister Manmohan Singh were supposed to be all about a free trade deal, but they took a detour to defence.
We now have what is being called a "deeper relationship" with a nuclear superpower.
It has helped New Zealand almost close a deal that could double trade by one billion dollars virtually overnight and be as big as that with China over time.
"The India-New Zealand relationship is poised for all round expansion," says Mr Singh.
John Key says that both nations see “potential for far deeper and richer cooperation".
Translated, that means opening up the 10th biggest economy in the world to Kiwi exporters is "oh so close".
India has certainly been welcoming, even if the opening tune was a little offbeat.
But New Zealand had to give something back - and this was the surprise.
Mr Key revealed that New Zealand and India will also be working together to deepen their defence relationship.
India is a nuclear superpower whose armed forces number one and a half million; New Zealand's number just 14,000.
So what "deepen" actually means is now up for interpretation.
The only specifics provided were that the deal is set to involve New Zealand’s Navy.
"New Zealand, like us, has a stake in ensuring the safety of sea links of communication and in combating piracy," says Mr Singh.
India's motivations for free trade are much clearer: It has 1.2 billion people, and needs our food.
But it is much more than that. India is booming; it has a huge middle class, and needs almost everything.
Mr Key is clearly a true believer; his eyes light up just at the potential for public infrastructure.
“We are going to spend in the order of $20-25 billion over a five or six year period rebuilding Christchurch. You know, they are going to spend US$1 trillion dollars over 5 years,” says Mr Key.
And that's why John Key has been on such a charm offensive here in India.
He really wants this deal to go through, and a face-to-face meeting with Manmohan Singh is the way to get it.
Sources on both sides expect the political will from this to push the deal over the line next year.
It is now over to the officials to sort out the details.
source: newshub archive
