Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon met on Monday to strengthen their defense and economic ties, following the announcement of renewed negotiations for a free trade agreement between the two countries.
During their meeting in New Delhi, the leaders signed agreements aimed at boosting cooperation in defense, food processing, pharmaceuticals, renewable energy, and critical minerals.
Luxon described the meetings as “highly productive,” stating that they would enhance the relationship between India and New Zealand. He highlighted that the defense collaboration would include joint military training.
“New Zealand is committed to expanding its partnership with India across a wide range of areas, including defense and security, trade and economics, people-to-people connections, education, tourism, sports, and culture,” Luxon said at a joint press conference with Modi.
Luxon was joined by business leaders and several parliamentarians during his five-day visit to India.
On Sunday, India and New Zealand agreed to resume free trade negotiations, which had been on hold for over a decade.
The decision came after talks between New Zealand’s Trade and Investment Minister Todd McClay and India’s Minister of Commerce and Industry, Piyush Goyal. This move is part of India’s recent efforts to secure trade agreements with various countries, especially following U.S. President Donald Trump’s decision to impose reciprocal tariffs on imported goods from several nations, including India.
Last month, India and the European Union reached an agreement to finalize a long-delayed free trade agreement by the end of this year. A similar trade deal is also being negotiated between India and the United Kingdom.
India’s Commerce Ministry stated that the free trade agreement with New Zealand aims to “achieve balanced outcomes that enhance supply-chain integration and improve market access,” but did not provide further details.
Luxon stated on Sunday, “Trade is the key to boosting the economies of both our nations, creating more jobs and increasing incomes for both Kiwis and Indians.”
In the 2023-24 financial year, bilateral trade between India and New Zealand reached $1.7 billion.