NEW DELHI — On Monday, Indian Prime Minister Narendra Modi and New Zealand’s Prime Minister Christopher Luxon convened in New Delhi to discuss strengthening their nations’ economic and defense partnerships. This meeting came shortly after the announcement of renewed negotiations for a free trade agreement between the two countries.
During their engagement, Modi and Luxon inked agreements aimed at bolstering cooperation in key areas such as defense, food processing, pharmaceuticals, renewable energy, and critical minerals. Luxon highlighted the significance of these discussions, deeming them “highly productive” and crucial in enhancing the bilateral relationship. Military alliances will see joint training initiatives, he noted.
“New Zealand is enthusiastic about expanding its collaboration with India across a diverse spectrum of sectors — from defense and security to trade and economics, as well as fostering people-to-people connections, education, tourism, sports, and culture,” Luxon stated during a joint press conference with Modi.
Accompanying Luxon on his five-day visit to India were business leaders and various parliamentarians. Their presence underscores the importance of these talks in the context of economic diplomacy.
On the previous day, India and New Zealand agreed to revitalize stalled free trade discussions, a process that had seen little progress over the past decade. The push to relaunch these talks was confirmed following meetings between New Zealand’s Trade and Investment Minister Todd McClay and India’s Commerce Minister Piyush Goyal. This decision aligns with India’s recent strategy to finalize trade agreements globally, particularly after the U.S. administration under then-President Donald Trump imposed reciprocal tariffs affecting Indian exports.
In a related development, India and the European Union have set a target to clinch a long-awaited free trade deal by year-end. Moreover, negotiations for a similar agreement between India and the United Kingdom are underway.
The Indian Commerce Ministry indicated that the proposed free trade agreement with New Zealand seeks to “achieve balanced outcomes that enhance supply-chain integration and improve market access,” though further specifics have not been divulged.
Luxon, in a statement on Sunday, emphasized the benefits of trade engagements, asserting that these agreements are poised to invigorate the economies of both countries, resulting in more job opportunities and higher incomes for citizens of both nations.
Financial data revealed that the trade volume between India and New Zealand reached $1.7 billion over the 2023-24 financial year.
This article revises previous figures related to bilateral trade.
