India–New Zealand FTA, $20 Billion Investment to Boost Bilateral Trade
Early FTA implementation, investment commitments, visa pathway and defence cooperation expected to feature in bilateral discussions
Prime Minister Narendra Modi’s priorities during his New Zealand visit include the early ratification and implementation of the recently signed Free Trade Agreement (FTA) and operationalising the proposed $20-billion investment pipeline.
He is expected to begin formal discussions on these issues with New Zealand Prime Minister Christopher Luxon on Saturday.
The two leaders are also expected to review the proposed visa pathway for Indian professionals and students. According to the report, the proposal has faced 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 strengthening collaboration in defence, education, sports and culture.
Prime Minister Modi’s visit is the first by an Indian Prime Minister to New Zealand in four decades.
Arrival in Auckland
Prime Minister Modi arrived in Auckland, where he was received by Prime Minister Christopher Luxon at the airport. The two leaders exchanged a warm embrace.
Prime Minister Modi posted on X:
“Reached Auckland a short while ago. Thankful to Prime Minister Luxon for the welcome at the airport,”
He also described the visit as “historic” and said he looked forward to discussing the full spectrum of India-New Zealand relations before addressing the Indian community in Auckland on Saturday.
FTA to Expand Bilateral Trade
The India-New Zealand FTA, signed in April, provides duty-free access for all Indian exports to New Zealand. The agreement is expected to benefit 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.
Prime Minister Christopher Luxon stated that 57% of New Zealand’s exports to India would become tariff-free from the first day of the FTA’s implementation, providing wider market access for New Zealand exporters.
Investment and Strategic Cooperation
New Zealand has separately committed to invest up to $20 billion in India over the next 15 years, supported by a dedicated single-window mechanism to accelerate approvals.
The leaders are also expected to discuss defence cooperation, maritime security and agri-tech collaboration before Prime Minister Modi concludes his visit on Saturday evening.
Current Trade Levels
Despite close diplomatic ties, bilateral trade between India and New Zealand remained modest at $1.15 billion in FY26.
Both countries expect the Free Trade Agreement to support higher trade volumes and increased investment flows in the coming years.