From Dialogue to Doctrine: The Gains From PM Modi’s Three-Nation Tour

PM Modi embarked on a three nation tour of Indonesia, Australia and New Zealand from July 6, 2026. This was a vital visit since all three nations are important trading partners of India and integral to the Act East policy. India ranks as New Zealand’s 11th largest export market while Indonesia and Australia are respectively India’s second largest ASEAN partner and fifth largest trade partner. The visit also carried heightened urgency due to the ‘China factor.’ Beijing conducted its first publicly acknowledged submarine-launched ICBM test on the same day as PM Modi’s departure, rattling all regional powers. With US ties looking increasingly shaky for all the nations involved, closer cooperation between themselves, both for mutual gain and to counter China’s growing might, is becoming increasingly critical.

India and Indonesia: Significant Strategic Gains

The visit to Indonesia was perhaps the most significant. Indonesia is a large developing nation, the 4th most populous globally. It also shares a lot of similarities with India. Both nations are emerging economic powerhouses in a democratic political setup. Both are extremely diverse in terms of ethnicity, language and religion and have a shared history of anti-colonial struggle and non-alignment during the Cold War. Culturally, Hindu-Buddhist influences have had a great impact on Indonesia, adding another important dimension to the relationship. A Comprehensive Strategic Partnership signed by both in 2018 has also served to elevate ties, but the recent bilateral visit marked a turning point as it involved direct engagement between the leaders of the two nations.

According to India’s Ministry of External Affairs (MEA), the visit yielded 20 major outcomes, ranging across diverse sectors. The most consequential results came about in the defence sector. A deal finalising the sale of two batteries of BrahMos missiles worth at least $200 million was signed. This makes Indonesia the third country, after the Philippines and Vietnam, to procure BrahMos. Less highlighted but also of equal importance was the first ever sale of the indigenously developed Astra air-to-air missiles. Combined, both the deals are said to be worth over $600 million. This acts as a major catalyst for Indian defence exports, which have steadily risen over the years and will encourage other nations who are in talks to pursue similar deals.

An important strategic gain for India was the announcement that Indonesia’s Sabang Port will be jointly developed by both nations. The port sits in the Strait of Malacca, around 160km from India’s upcoming Great Nicobar port. The strait is a critical maritime chokepoint, with 80% of China’s crude oil imports passing through it. It will also boost trade with India’s Bay of Bengal ports. India also managed to secure access to Indonesia’s nickel reserves, which are an important component in the production of EVs. PM Modi’s visit to Yogyakarta and its temple complex of Prambanan lent a cultural aspect to the visit, with India committing to assist in the restoration of the ancient monument. It goes to show that the bilateral relationship is not just ‘transactional’, rather it is also embedded in shared cultural linkages.

The visit marked a shift from simply dialogue and narratives to concrete action, delivering results for both sides. The gains were comprehensive and not just limited to one specific sector. Strong strides were also made towards strong institutional collaboration, which strengthens ties. This visit has served to highlight the gains of India’s Act East and MAHASAGAR policies. Overall, it would not be an overstatement to say that Indonesia has become India’s most important partner in the ASEAN. Looking ahead, both nations should focus on negotiating a tricky bilateral Comprehensive Economic Partnership Agreement (CEPA), which is still pending.

The Australia Leg: Security & Energy

 The next leg took place in the land down under from July 8-10. This was part of the third India-Australia Annual Summit, conducted in Melbourne. It was another critical visit, yielding 18 major outcomes. The most important was the finalization of administrative arrangements under the India-Australia Civil Nuclear Agreement, which was signed back in 2014. Australia is the world’s largest uranium producer and this agreement enables Australian uranium exports to India for peaceful purposes. This will serve to fast track India’s clean energy drive, as nuclear energy derived from uranium is a reliable and low carbon source of electricity. Critically, this breakthrough ends India’s isolation from the global geopolitical market due to its non-NPT status, which was a major sticking point. It shows that the world has come to accept India as a responsible nuclear power.

Another important aspect was defence cooperation, talks around which were focused on greater interoperability. This emphasis marks a qualitative shift from mere capacity building to operational integration, which is essential for swift responses in the event of a crisis. On the economic front, the India-Australia Partnership on Cyber, Critical Technologies and Supply Chains (PACTS) was also signed. This will help to reduce both countries’ dependencies on China, especially for critical technologies such as AI, telecom, biotech and space technologies. Along with that, cricket also acts as a connection between the two nations, with Australia’s Big Bash league set to conduct its opening match in India in its next season. This is a major factor, as such ‘soft’ linkages will endure even if domestic political situations change.

These agreements can certainly boost bilateral trade, whose value pales in comparison to each country’s bilateral trade with China. To bridge this gap, New Delhi and Canberra seek to double bilateral trade to AUD 100 Billion by 2030. This is a difficult target to achieve, particularly because several barriers to trade exist. Trade imbalances in favour of Australia, regulatory hurdles and domestic anti-immigration policies may have an adverse impact on these agreements. The fulfillment of the trade objectives also hinges on the active participation of the private sector. The India-Australia CEO Forum during the visit was a positive sign in this regard. Hence, the current approach, focused on security and energy as the foundation, can help build firmer ties in the long term, provided that mutual concerns are sufficiently addressed.

New Zealand: Breaking New Ground

PM Modi is the first sitting Indian PM to visit New Zealand in 40 years. Despite some engagements in the 80s, the intervening decades did not see much bilateral activity largely due to the differing priorities of both nations. New Zealand was focused on the Pacific, while India was undergoing a major economic boom in the post Cold War period, shifting focus elsewhere. However, the growing Indian diaspora in New Zealand and the rise of China as a shared threat for both nations has prompted a reset in recent years. 

This was exemplified by the fact that the leaders also said that they ‘quickly canvassed’ China’s recent missile test, expressing concerns over the militarization of the Pacific, showing that both nations are alert about Chinese moves in the region. New Zealand has traditionally avoided military alliances, so the fact they are willing to discuss China’s missile tests is a major policy shift, showcasing the extent of the threat posed by Beijing.

Economic ties have also seen an uptick. The India-NZ Free Trade Agreement was signed in April of this year, which is expected to significantly boost commerce. This focuses on sectors like agritech, dairy and renewable energy, which are the main industries in New Zealand. After the elevation of ties to a Strategic Partnership, New Delhi and Wellington aim to increase bilateral trade to INR 35,000 crore by 2030. New Zealand has also committed to invest US $20 Billion in India over the next 15 years. These are significant investment amounts, but non-tariff barriers, and immigration concerns in New Zealand may derail these plans. In a major development, India’s UPI will be linked with New Zealand’s payment system and direct non-stop flights between the two nations are to commence soon. This can cut travel time and costs, significantly boosting tourism. 

This three nation tour has given New Delhi major strategic, maritime and economic gains as part of its Act East policy. Greater trade and investment, security and maritime collaboration, energy and mineral agreements as well as cultural linkages can boost India’s standing, especially vis-a-vis China in the region, though catching up with the dragon still remains a distant dream. However, in the short-term, India will receive major benefits from the pacts and agreements signed during this tour, as it marks an upgrade from dialogues to actionable doctrines.