India, New Zealand elevate ties, target ₹35,000 crore trade by 2030

New Zealand was the final destination of Modi’s three-nation tour, which also included Indonesia and Australia and was focused on forging closer economic

India and New Zealand on Saturday elevated their relations to a strategic partnership and set a target of increasing trade in goods and services to ₹35,000 crore (US$4 billion) by 2030 as Prime Minister Narendra Modi and his counterpart Christopher Luxon pledged to deepen cooperation in trade and security and strengthen a rules-based Indo-Pacific.

New Zealand was the final destination of Modi’s three-nation tour, which also included Indonesia and Australia and was focused on forging closer economic and strategic ties with key players in the Indo-Pacific region amid continuing volatility and uncertainty on the global stage. Modi was the first Indian premier to visit New Zealand in four decades.

The two sides concluded a dozen agreements, including measures for enhanced maritime cooperation in the Indo-Pacific, a mutual logistics support arrangement for warships to access support at each other’s bases, the establishment of a joint working group to counter terrorism, and a joint action plan on sport. They also finalised a roadmap to enhance ties in different sectors till 2030.

“We have taken the historic decision to elevate India-New Zealand relations to a strategic partnership…We will move forward with clear goals and concrete results in every area,” Modi said at an event themed “India-New Zealand: A winning partnership” that was also attended by Luxon.

Modi said close cooperation between the two maritime nations will give the Indo-Pacific new strength, and the two sides can act as catalysts advocating for peace.

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Luxon described the strategic partnership as a “significant step forward in a world that is increasingly volatile and uncertain”, and said it provides a stronger platform for practical cooperation and will enable closer cooperation in defence, maritime security and law enforcement.

India and New Zealand have a shared interest in a free, open, peaceful and prosperous Indo-Pacific and will strengthen maritime cooperation, including through the new Maritime Cooperation Arrangement between India’s defence ministry and the New Zealand Defence Force and the Mutual Logistics Support Arrangement, according to a joint statement. They also agreed to establish an annual maritime security dialogue to strengthen coordination and information exchanges.

Modi and Luxon reaffirmed their commitment to respect for sovereignty and territorial integrity and upholding a rules-based order in the Indo-Pacific, the joint statement said.

They also reiterated their support for freedom of navigation and overflight in line with the 1982 United Nations Convention on the Law of the Sea and emphasised the importance of working together for security and prosperity in the Indo-Pacific.

Modi’s visit came less than three months after the signing of a free trade agreement (FTA) with New Zealand, and the two sides set the goal of doubling annual trade in goods and services to ₹35,000 crore (NZ$7 billion or US$4 billion) by 2030. Bilateral trade was worth US$2 billion in 2024, with Indian exports of goods and services valued at US$1 billion.

“Our trade has grown by more than 50% over the last three years. We are confident that the FTA will provide a strong foundation for doubling our trade over the next five years. We also welcome New Zealand’s investment commitment of US$20 billion in India. This will provide New Zealand companies with the opportunity to become long-term partners in India’s growth story,” Modi said.

Luxon and Modi also agreed to work together to ensure the early entry into force of the FTA. Rudrendra Tandon, secretary (East) in the external affairs ministry, told a media briefing that New Zealand’s Parliament had completed the first of three readings of the FTA as part of the ratification process. He quoted Luxon as telling Modi that there is bipartisan support for the trade deal in New Zealand and didn’t foresee any problem for its ratification.

Luxon described India as an Indo-Pacific partner known for its scale, innovation, ambition and strategic influence, while New Zealand is trusted and globally connected and offers expertise in food production, education and technology. Modi said the FTA will open new doors for industries, farmers and youth and create a blueprint for trade, trust, technology and talent.