FTA, $20 billion investment top Modi’s New Zealand agenda

Prime Minister Narendra Modi’s priorities during his New Zealand visit, which begins on Friday, include early ratification and implementation of the recently signed free trade agreement (FTA) and operationalising the $20-billion investment pipeline. He is expected to begin discussions on these issues with New Zealand Prime Minister Christopher Luxon on Saturday.

The two leaders are also likely to review the proposed visa pathway for Indian professionals and students, which has encountered resistance within New Zealand’s coalition government, with coalition partner New Zealand First raising concerns over immigration concessions.

Other agenda items include launching direct air connectivity, expanding maritime security cooperation, and deepening collaboration in defence, education, sports and culture, sources said.

Modi’s visit — the first by an Indian Prime Minister to New Zealand in four decades — marks the final leg of his three-nation tour, following visits to Indonesia and Australia.

Modi was received by Luxon at Auckland airport, where the two leaders exchanged a warm embrace.

“Reached Auckland a short while ago. Thankful to Prime Minister Luxon for the welcome at the airport,” Modi posted on X, describing the visit as “historic” and saying he looked forward to discussing the full spectrum of India-New Zealand ties before addressing the Indian community in Auckland on Saturday.

For India, the FTA, signed in April, provides duty-free access for all exports to New Zealand, benefiting labour-intensive sectors such as textiles, leather and marine products, while also opening New Zealand’s services market to Indian IT, education and professional services.

In return, India has agreed to reduce tariffs on most imports from New Zealand, while safeguarding sensitive sectors such as dairy.

New Zealand has separately committed to invest up to $20 billion in India over the next 15 years, backed by a dedicated single-window mechanism to fast-track approvals. Luxon said on Thursday that 57 per cent of New Zealand’s exports to India would become tariff-free from the first day of the FTA’s implementation, providing a major boost to Kiwi businesses.

The leaders are also expected to discuss defence co-operation, maritime security and agri-tech collaboration.

Modi will depart New Zealand on Saturday evening, concluding his three-nation diplomatic outreach.

Despite close political ties, bilateral trade remains modest at $1.15 billion in FY26.

Both countries expect the FTA to unlock significantly greater trade and investment flows in the coming years.