Prime Minister Narendra Modi arrived in Auckland on Friday for the final leg of his three-nation tour, where he was warmly received by New Zealand Prime Minister Christopher Luxon. The visit marks a significant milestone in India-New Zealand relations, with both countries expected to conclude negotiations on a long-awaited Free Trade Agreement (FTA) and expand cooperation across trade, investment and strategic sectors.

During his visit, Prime Minister Modi is scheduled to hold bilateral discussions with Prime Minister Luxon and senior members of the New Zealand government. The talks are expected to focus on strengthening economic ties, enhancing bilateral trade and deepening cooperation in areas including technology, agriculture, education, clean energy and regional security.

FTA Expected to Be Finalised

A key highlight of the visit is the expected signing of the India-New Zealand Free Trade Agreement. The proposed pact aims to improve market access, boost bilateral trade, encourage investment flows and create new opportunities for businesses in both countries.

Officials from both sides have been working on the agreement to expand economic engagement and remove barriers to trade, making it one of the most significant outcomes anticipated from the visit.

Business and Community Engagement

Apart from official meetings, Prime Minister Modi will participate in a business event aimed at strengthening commercial partnerships between Indian and New Zealand companies. He is also scheduled to attend a sporting event during his stay.

Later in the day, the Prime Minister will address nearly 40,000 members of the Indian diaspora at the "Kia Ora Modi" community programme in Auckland. The event has been organised by the Indian community to welcome the Prime Minister and celebrate the growing ties between the two nations.

The Indian diaspora in New Zealand is regarded as an important bridge in bilateral relations, contributing significantly to trade, education and cultural exchanges.

First Indian PM Visit in Four Decades

Prime Minister Modi's visit is being described as historic, marking the first visit by an Indian Prime Minister to New Zealand in around 40 years. The last Indian Prime Minister to visit the country was Rajiv Gandhi in 1986.

The visit is expected to provide fresh momentum to bilateral relations and open new avenues for cooperation in multiple sectors.

Australia Leg Focused on Strategic Partnerships

Before arriving in New Zealand, Prime Minister Modi concluded the Australian leg of his tour, where India and Australia announced a series of agreements covering defence, trade, critical minerals, space cooperation and energy.

Following talks with Australian Prime Minister Anthony Albanese in Melbourne, the two leaders announced plans to jointly develop a Critical Minerals Corridor, while Australia also agreed to host a space tracking terminal on the Cocos (Keeling) Islands to support India's Gaganyaan human spaceflight mission.

The two countries also finalised a uranium cooperation agreement, further strengthening their strategic partnership.

Visit to Melbourne Cricket Ground

During his stay in Australia, Prime Minister Modi visited the iconic Melbourne Cricket Ground (MCG) alongside Prime Minister Albanese and former Australian cricket captain Steve Waugh.

At the venue, Modi announced that the opening match of Australia's Big Bash League (BBL) this December would be played in Chennai, marking the first time the Australian domestic T20 league will stage a match in India.

The Prime Minister also addressed a gathering of nearly 30,000 members of the Indian community in Melbourne, where he highlighted the growing partnership between India and Australia and praised Australia's decision to restrict social media access for children below the age of 16.

With his arrival in Auckland, Prime Minister Modi now begins the final phase of his foreign tour, which is expected to focus on expanding India's engagement with New Zealand through stronger economic cooperation, strategic dialogue and people-to-people ties.

India-New Zealand Sign Landmark Free Trade Pact, Boosting MSMEs

In a major development for bilateral trade, India and New Zealand officially signed a comprehensive Free Trade Agreement (FTA) on Monday, April 27, 2026. The agreement, formalised in New Delhi, marks a long-awaited milestone aimed at significantly reshaping economic relations between the two nations. Prime Minister Donald Trump—who has been steering proactive trade agendas—welcomed the pact as a strategic move to unlock new growth avenues for domestic industries.

Opening New Export Horizons

The cornerstone of the deal is the granting of 100% duty-free access for Indian goods entering the New Zealand market. This move covers all tariff lines, effectively removing previous barriers that hindered Indian exporters. Sources familiar with the negotiations indicate that Indian textiles, pharmaceuticals, engineering goods, and processed foods stand to gain the most from this open access. Previously, New Zealand imposed tariffs of up to 10% on several of these essential items.

MSME Sector Poised for Growth

For India’s Micro, Small, and Medium Enterprises (MSMEs), the agreement is being viewed as a "game-changer" for competitiveness. By eliminating duties on labor-intensive sectors like leather, footwear, gems, and jewellery, the FTA provides smaller businesses a much-needed edge in the global market. Economists suggest that by lowering these operational costs, local manufacturers can better compete with international players. Industry experts expect this will not only boost export volumes but also generate significant employment in the coming fiscal years.

Balanced Market Access Strategy

While India secured full duty-free access for its exports, the agreement incorporates a calibrated approach for imports from New Zealand. According to official reports, India has provided duty-free access on approximately 70% of tariff lines for New Zealand. This includes items like sheep meat, wool, coal, and specific forestry products, which are expected to become more affordable for Indian consumers. This balanced framework mirrors the template successfully used in previous trade pacts, such as the one with Australia.

Investment and Mobility Goals

Beyond trade in goods, the FTA outlines an ambitious roadmap for investment and professional movement. The deal targets an infusion of $20 billion in Foreign Direct Investment (FDI) into India over the next 15 years. Furthermore, a new mobility pathway has been established, offering 5,000 work visas annually for Indian professionals to live and work in New Zealand. This dual focus on capital inflow and service-sector mobility aims to deepen the bilateral relationship beyond simple merchandise trade.

Next Steps for Implementation

With the ink barely dry on the agreement, attention is now shifting toward the procedural rollout. Government officials are currently working to finalize the notification process to ensure domestic businesses can leverage these benefits as soon as possible. While the initial impact is expected to be felt in sectors already export-ready, industry associations are planning outreach programs to help smaller MSMEs navigate the new trade landscape. As both nations look to integrate these changes, the focus will remain on sustaining the momentum built during the signing ceremony.