Modi's Visit to New Zealand: A Step Towards Strengthened Trade Ties

Prime Minister Narendra Modi's visit to New Zealand aims to strengthen bilateral trade and commercial ties following a newly signed Free Trade Agreement. Despite recent trade slowdowns, the FTA is set to diversify and expand India-New Zealand trade relations with new market access and reduced trade barriers.

Prime Minister Narendra Modi is set to depart for New Zealand on Friday, following an invitation from New Zealand Prime Minister Christopher Luxon. This much-anticipated visit comes shortly after the ratification of a Free Trade Agreement (FTA) intended to rejuvenate commercial relations between the two nations. Though recent data indicated a slowdown in merchandise trade, the FTA aims to revitalize these ties.

A report by Rubix Data Sciences revealed that the merchandise trade between India and New Zealand experienced an 8% CAGR from FY22 to FY26, exceeding USD 1 billion, despite a decline from a FY25 peak of USD 1,298 million. The trade balance favored New Zealand by FY26, marking a shift from a USD 113 million surplus in FY22 to a USD 23 million deficit, primarily due to faster import growth outpacing exports. India's exports decreased by 20% in FY26, contrasting with the steady growth of imports from New Zealand.

In a statement, Prime Minister Modi emphasized his commitment to building on the momentum from Prime Minister Luxon's visit to India in 2025, focusing on economic, trade, and commercial engagements. Despite the recent downturn in trading volume, the FTA is expected to unlock new opportunities, particularly through improved market access. Signed on April 27, 2026, after negotiations concluded in December 2025, the agreement spans crucial areas such as agriculture, MSME development, services, and technical cooperation. With New Zealand ranking as India's second-largest trading partner in Oceania, the diaspora of Indian origin there continues to bridge the two nations.