Ahead of Prime Minister Narendra Modi’s landmark visit to New Zealand, New Zealand Prime Minister Christopher Luxon has strongly endorsed the proposed India-New Zealand trade agreement, describing it as a transformative opportunity for businesses and a major step towards expanding economic ties between the two countries.
In a message shared on X on Thursday, Luxon highlighted the immediate benefits the agreement would bring to New Zealand exporters, stating that 57 per cent of the country's exports to India would become tariff-free from the very first day of the deal's implementation. He expressed confidence that improved access to one of the world's fastest-growing economies would create significant opportunities for New Zealand businesses across multiple sectors.
“New Zealand businesses are set to boom with our India Trade Deal. Fifty-seven per cent of everything we export to India will be tariff free from day one,” Luxon wrote, underlining his government's commitment to strengthening economic engagement with India.
The announcement comes just ahead of Prime Minister Narendra Modi’s two-day state visit to New Zealand from July 10 to 11, undertaken at the invitation of Prime Minister Luxon. The visit is being viewed as a milestone in bilateral relations, as it will be the first state visit by an Indian Prime Minister to New Zealand in nearly 40 years.
The high-level engagement reflects the growing importance both nations attach to their partnership amid changing geopolitical and economic dynamics in the Indo-Pacific region. India and New Zealand have intensified diplomatic engagement in recent years, with both governments seeking closer cooperation in trade, investment, education, agriculture, technology and regional security.
During his stay in Auckland, Prime Minister Modi is expected to hold extensive bilateral discussions with Prime Minister Luxon. The leaders will review the full spectrum of India-New Zealand relations and explore new avenues of cooperation aimed at elevating the partnership to a higher level.
According to official statements, trade and commerce will be at the centre of the discussions. Both countries are keen to conclude a comprehensive trade agreement that would reduce barriers, improve market access and encourage greater investment flows. New Zealand sees India as a rapidly expanding market with enormous potential for its agricultural products, food processing industry, education services and advanced technologies.
Defence and strategic cooperation are also expected to feature prominently on the agenda. As Indo-Pacific nations strengthen partnerships to ensure a stable, secure and rules-based regional order, India and New Zealand have increased consultations on maritime security, disaster response and regional connectivity.
The Prime Minister’s Office has noted that bilateral ties have gained significant momentum in recent years, particularly in the fields of trade, commerce and defence. Officials believe Modi’s visit will build on this progress and provide fresh direction to cooperation in emerging sectors such as clean energy, digital innovation, critical technologies and resilient supply chains.
The visit also carries symbolic significance, reflecting the renewed focus both governments have placed on strengthening people-to-people links. The large and vibrant Indian diaspora in New Zealand continues to serve as a bridge between the two nations, contributing to stronger cultural, educational and business connections.
Analysts believe the proposed trade agreement could become one of the defining outcomes of the visit, helping diversify supply chains and boosting bilateral trade, which has remained below its full potential despite steady growth in recent years.
With economic cooperation, strategic coordination and regional engagement expected to dominate discussions, Prime Minister Modi’s visit is poised to open a new chapter in India-New Zealand relations, reinforcing the shared commitment of both nations to a stronger and more comprehensive partnership.
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