PM Modi Hails India-New Zealand FTA

 as Historic Milestone, Says It Will Deepen Bilateral Ties

Report By Y-Trendz

Auckland, July 11, 2026: Prime Minister Narendra Modi on Saturday described the India-New Zealand Free Trade Agreement as a historic milestone in bilateral ties, thanking New Zealand Prime Minister

Christopher Luxon for concluding the pact in a short span. The remarks came during delegation-level talks in Auckland, where Modi also hailed the visit as the first by an Indian Prime Minister to New Zealand in 40 years, saying it had infused new momentum into the relationship and reaffirmed both countries' commitment to deepening their partnership.

A Visit Four Decades in the Making

Modi arrived in Auckland on Friday, where he was received by Prime Minister Luxon, and the two leaders shared a warm embrace. The trip was undertaken at Luxon's invitation and comes months after the two countries formally signed their Free Trade Agreement in April this year. The visit is widely seen as a catalyst intended to build on that agreement and generate fresh energy in trade and diplomatic ties between the two nations.

Speaking during the talks, Modi expressed emotion at being the first Indian premier to visit the country in four decades, saying the gesture of hosting an event in New Zealand's economic capital had created space to inject new strength into the relationship. He said the warmth extended by New Zealanders had moved him deeply and called the visit a defining moment in the countries' shared history.

Reflecting on the origins of the trade pact, Modi credited Luxon's visit to India last year, during which negotiations on the FTA began. He praised the speed with which New Zealand's government and negotiating team worked to bring the agreement to conclusion, describing the pace as something close to unprecedented on the world stage. He also thanked Luxon personally, along with his government and officials, for what he called a significant diplomatic achievement.

Modi drew a personal touch into his remarks by recalling that Luxon had visited India during the festival of Holi the previous year, saying that trip had added new colour to the relationship in much the same way the festival itself is associated with colour. He noted that the two countries were now formalising their ties through a new Strategic Partnership, which he said would give both nations the confidence and energy to move forward together.

Shared Values as the Foundation of Partnership

Beyond the economic dimension, Modi framed the relationship in terms of shared democratic values and geography. He argued that India and New Zealand were natural partners because of their mutual commitment to democracy, and noted that both nations, as maritime powers in the Indo-Pacific region, had a role to play in regional stability. He expressed confidence that the strengthened partnership would allow both countries to make a meaningful contribution to global peace and security going forward.

Target: Doubling Trade by 2030

Later in the day, at a Business and Sports Engagement event in Auckland, Modi went further, laying out concrete ambitions for the economic relationship. He noted that the two countries had concluded the Free Trade Agreement in a record nine months, and said the pact would open up new opportunities in market access, investment, services and technology. He voiced confidence that bilateral trade between the two nations could double by 2030.

That ambition is reflected in the formal roadmap the two governments have adopted alongside the FTA. Under what has been described as Pillar III of the newly agreed Roadmap on Trade and Economic Cooperation, India and New Zealand have set an aspirational goal of doubling two-way trade in goods and services to NZ$7 billion, or roughly ₹35,000 crore, by 2030. Both sides also agreed to work on next steps to ensure the FTA enters into force quickly and is implemented effectively. A joint statement issued by the two leaders welcomed the conclusion of what they called a balanced, comprehensive and mutually beneficial agreement, and committed to its swift execution.

Modi also highlighted New Zealand's financial commitment to India's growth story, noting that New Zealand has pledged an investment of USD 20 billion in India over the next 15 years. He characterised this not merely as a capital commitment but as a sign of confidence in India's long-term economic trajectory, and described New Zealand as a partner in India's broader development journey.

New Zealand's Perspective: "One of the Highest-Quality" Agreements

New Zealand's Minister for Trade and Investment, Todd McClay, echoed Modi's enthusiasm in comments made ahead of the visit. In an interview, McClay called the agreement one of the highest-quality trade deals either country has negotiated, saying it would give businesses on both sides the confidence to build long-term partnerships under a trusted, rules-based framework. He pointed to sectors such as information and communications technology, critical minerals and agriculture as areas likely to see accelerated cooperation, and suggested New Zealand's agricultural expertise could support India's efforts to boost farm productivity.

McClay also praised India's economic transformation under Modi's leadership, describing the country as confident and increasingly driven by a young, well-educated population. He suggested there was room for deeper digital cooperation between the two countries, including potential discussions around extending platforms like India's Unified Payments Interface (UPI) into the New Zealand market, though he noted any such system would need to fit within New Zealand's existing regulatory framework.

Cultural and Diaspora Engagement

The visit has carried a strong cultural dimension as well. Modi received a traditional Maori powhiri welcome at Government House in Auckland, which he described as an honour. His itinerary also included an address to New Zealand's Indian diaspora, now described as the country's third-largest ethnic community, reflecting the deep people-to-people ties between the two nations. Modi was also scheduled to interact with prominent figures from New Zealand's business and sports communities during his stay.

For his part, Luxon has called Modi's visit a significant milestone in the New Zealand-India relationship and used the occasion to announce the elevation of ties through the new strategic partnership framework, signalling that both governments view the moment as a turning point rather than a one-off diplomatic exchange.

With the Free Trade Agreement now signed and a formal roadmap in place, attention will turn to how quickly the pact can be ratified and implemented, and whether the ambitious target of doubling bilateral trade by 2030 can be met against a backdrop of global economic uncertainty.