New Delhi, India — On Monday, March 17, 2025, Indian Prime Minister Narendra Modi welcomed New Zealand Prime Minister Christopher Luxon to New Delhi, marking a significant step in deepening defense and economic ties between the two nations. The leaders’ meeting at Hyderabad House came a day after India and New Zealand announced the revival of free trade agreement (FTA) negotiations, dormant for over a decade, signaling a renewed push to bolster their bilateral relationship.
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During the talks, Modi and Luxon signed multiple agreements aimed at enhancing cooperation in key sectors: defense, food processing, pharmaceuticals, renewable energy, and critical minerals. The defense pact includes provisions for joint military training, exercises, and port visits, reflecting a shared commitment to security in the Indo-Pacific region. “We have decided to strengthen and institutionalize our defense and security collaboration,” Modi said in a joint press conference, emphasizing a roadmap for mutual cooperation in defense industries.
Luxon, leading a high-level delegation that includes business leaders and parliamentarians on his five-day visit, described the discussions as “highly productive.” He underscored New Zealand’s intent to expand ties across a broad spectrum: “New Zealand is committed to doing more with India in defense and security, trade and economics, people-to-people ties, education, tourism, sports, and culture.” His visit, which began Sunday, also saw him pay tribute to Mahatma Gandhi at Rajghat, highlighting cultural goodwill.
The FTA revival, announced on March 16 following talks between New Zealand Trade Minister Todd McClay and Indian Commerce Minister Piyush Goyal, aims to address past sticking points and unlock economic potential. Negotiations, stalled since 2015 after nine rounds, had faltered over issues like New Zealand’s dairy exports and India’s protective agricultural policies. India’s Commerce Ministry stated the renewed effort seeks “balanced outcomes that enhance supply-chain integration and improve market access,” though specifics remain under wraps. Bilateral trade, valued at $1.7 billion in the 2023-24 financial year, is targeted to grow significantly, with both nations eyeing a $5 billion milestone by 2030.
This development aligns with India’s broader trade strategy, spurred by U.S. President Donald Trump’s reciprocal tariffs on imports, including from India. In recent weeks, India has accelerated FTA talks globally, agreeing last month with the European Union to finalize a long-pending deal by year-end and advancing negotiations with the United Kingdom. For New Zealand, the talks reflect a pivot to diversify trade partnerships beyond China, leveraging India’s 1.4 billion-strong market.
Luxon’s visit, his first official trip to India as prime minister, underscores the growing momentum. Accompanied by the largest-ever New Zealand delegation to India, he will also address the Raisina Dialogue as the keynote speaker and visit Mumbai to meet business leaders and inspect naval vessels, including the Royal New Zealand Navy’s HMNZS Te Kaha. Modi highlighted the Indian diaspora’s role—over 200,000 strong in New Zealand—as a bridge, noting plans to celebrate a century of sporting ties in 2026.
As of March 18, 2025, with FTA talks set to unfold over multiple rounds, the Modi-Luxon summit lays a robust foundation for a partnership blending economic ambition with strategic alignment, poised to reshape India-New Zealand relations in a dynamic global landscape.
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