On March 17, 2025, Indian Prime Minister Narendra Modi held discussions with New Zealand Prime Minister Christopher Luxon in New Delhi, aiming to fortify their defense and economic relations. This meeting occurred shortly after both nations announced the revival of stalled negotiations for a free trade agreement (FTA), which had been inactive for over a decade.
During their meeting, Modi and Luxon signed various agreements to enhance cooperation in several sectors, including defense, food processing, pharmaceuticals, renewable energy, and critical minerals. Luxon emphasized the significance of these discussions, describing them as "highly productive" and expressing optimism that they would strengthen bilateral ties. He pointed out that the defense collaboration would involve joint military training.
Luxon stated at a joint press conference that New Zealand is "committed to doing more with India across a wide range of areas—defense and security, trade and economics, people-to-people ties, education, tourism, sports, and culture." The five-day visit by Luxon also included participation from business leaders and several parliamentarians, highlighting the strategic importance of reinforcing economic ties.
On March 16, 2025, the trade discussions were officially initiated when New Zealand Trade and Investment Minister Todd McClay met with Indian Commerce Minister Piyush Goyal. The revival of free trade negotiations reflects India’s recent efforts to develop trade agreements with multiple countries, particularly in light of U.S. President Donald Trump’s imposition of reciprocal tariffs affecting goods imported from India and other nations.
In September 2023, India also moved closer to finalizing a long-awaited free trade agreement with the European Union by the end of that year. Additionally, an FTA with the United Kingdom is likewise in progress, marking a renewed focus on international trade post-pandemic.
India's Commerce Ministry stated that the upcoming free trade deal with New Zealand aims for "balanced outcomes that enhance supply-chain integration and improve market access." However, specific details regarding the agreement have yet to be disclosed.
In a statement, Luxon expressed that trade is a crucial avenue for boosting the economies of both countries, generating job opportunities and increasing income levels for citizens in both New Zealand and India. The bilateral trade between India and New Zealand is reported to have reached $1.7 billion in the 2023-24 financial year, underscoring the economic significance of this partnership.
In conclusion, the developments from the meeting between Modi and Luxon indicate a mutual commitment to broadening the scope of collaboration and strengthening economic ties, setting a positive trajectory for future interactions between India and New Zealand.
