Prime Minister Narendra Modi’s official visit to New Zealand is set to inject fresh momentum into bilateral relations, with a primary focus on expanding trade, investment, and long-term economic cooperation. Marking a historic milestone, this is the first state visit by an Indian Prime Minister to New Zealand in four decades.
The visit comes closely on the heels of a momentous development in bilateral economic relations—the signing of the comprehensive India-New Zealand Free Trade Agreement (FTA) on April 27, 2026. Initiated with negotiations launched on March 16, 2025, the pact was wrapped up in a record nine months, making it India’s fastest-concluded free trade agreement to date.
Over the last decade, merchandise trade between the two nations has grown by 52 percent, climbing from USD 855 million in 2015-16 to USD 1.298 billion in 2024-25. India has comfortably maintained a trade surplus, with merchandise exports rising to USD 711 million. Simultaneously, India’s services exports to New Zealand reached USD 634 million in 2024, showing a robust 13 percent year-on-year growth. India’s export bucket is led by pharmaceuticals, mechanical machinery, textiles, and precious stones, while imports from New Zealand heavily feature wool, iron, steel, fruits, nuts, and aluminium.
Under the freshly inked FTA, New Zealand has granted immediate duty-free market access to 100 percent of Indian exports. In return, India has offered market access to over 70 percent of its tariff lines, successfully protecting sensitive domestic agricultural and dairy sectors while lowering or eliminating tariffs on 95 percent of New Zealand’s export value. Crucially, the agreement includes a commitment from New Zealand to facilitate up to USD 20 billion in investments into India over the next 15 to 20 years.
Beyond goods, the FTA opens sweeping pathways for talent mobility, professional services, and education, benefiting MSMEs, students, and skilled professionals. It uniquely accommodates Indian traditional medicine, establishing structured access for AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, alongside mainstream sectors like IT, healthcare, and engineering.
Bilateral connectivity has also entered a high-growth phase. Following the liberalized Air Services Agreement of 2023 and New Zealand PM Christopher Luxon’s visit to India in 2025, Air India and Air New Zealand signed a codeshare partnership spanning 16 routes, with actively coordinated plans to explore direct flights by 2028.
As corporate giants like Infosys, Tech Mahindra, and Dr. Reddy's expand their footprint in New Zealand, and Kiwi tech leaders like Gallagher Group and Rakon strengthen manufacturing hubs in India, PM Modi's visit underscores a winning partnership poised for unprecedented economic integration.
