The global expansion of India’s Unified Payments Interface (UPI) continues to grow. In this context, New Zealand’s Minister for Trade and Investment, Todd McClay, stated on Friday that his country is ready to welcome UPI, India’s indigenous QR-based digital payment system. He believes the system could play a pivotal role in modernizing New Zealand’s economy.
During the conversation, McClay noted that New Zealand is an open economy where any incoming technology must align with national regulations. He remarked that this would not pose a significant challenge for UPI. “UPI can certainly come to New Zealand. Digital infrastructure is crucial today. We are modernizing our economy. We are fully open to the world, and a Free Trade Agreement (FTA) with India makes this process easier and more reliable,” he said.
McClay highlighted that trade relations between India and New Zealand are steadily strengthening. He anticipates an acceleration in business-to-business (B2B) cooperation and investment between the two nations in the near future. “New Zealand aims to increase investment in India, and India will also invest in New Zealand. Such interactions between the business communities of both countries will increase further,” he stated.
UPI services were also launched in Greece late last month, enabling customers to make fast, secure, and low-cost international money transfers. Currently, UPI accounts for approximately 49 percent of the world’s real-time digital payment transactions, making it the largest real-time payment system globally. At present, UPI is available for merchant payments and cross-border remittances in about nine countries.
Amidst threats to global supply chains caused by US-Iran tensions, McClay stated that both India and New Zealand are working to further strengthen their connectivity. He mentioned that new shipping services would be launched between the two nations and maritime trade routes would be further reinforced. McClay said, “Tensions are rising again in the Middle East. We want peace to prevail and for all issues to be resolved through dialogue.” He noted that a free trade agreement brings greater stability and confidence to trade between the two nations.
He stated, “Supply chain challenges always exist, but India and New Zealand have decided to enhance mutual cooperation. In the future, shipping routes between the two countries will strengthen, and their numbers will increase.” Bilateral trade between India and New Zealand has steadily grown over the past few years. The FTA between the two nations aims to further boost this trade and strengthen their strategic partnership.
Total trade between the two countries rose from approximately $900 million in 2019-20 to $1.3 billion in 2024-25. During this period, India’s exports increased from $379 million to $711 million, while imports from New Zealand rose from $522 million to $587 million. Todd McClay also announced that Air New Zealand would open three new offices in India to boost air connectivity between the two nations.
He mentioned that Air India and Air New Zealand have sought approval from New Zealand’s commercial regulator to collaborate on flights between the two countries. McClay said, “At a time when uncertainty is rising in other parts of the world, the free trade agreement between India and New Zealand offers both nations an opportunity to enhance cooperation based on mutual trust.”
He noted that under this FTA, tariffs on 100 percent of products exported from India to New Zealand have been eliminated. Meanwhile, tariffs on 95 percent of products imported from New Zealand to India have either been completely removed or significantly reduced.
