A day ahead of Prime Minister Narendra Modi’s scheduled state visit to New Zealand, his counterpart Christopher Luxon on Thursday (July 9) lauded the India-New Zealand trade deal staying that it would make 57 per cent of his country’s exports to India “tariff-free” from day one.
Luxon further stated that the business of New Zealand-based companies will flourish in India with the proposed trade deal.
“New Zealand businesses are set to boom with our India Trade Deal. 57 per cent of everything we export to India will be tariff-free from day one,” stated Luxon in a post on X.
PM Modi’s landmark visit
The development comes a day ahead of PM Modi’s two –day visit to India from July 10 to 11. This will be the first state visit of an Indian Prime Minister to New Zealand in four decades.
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According to a government release, in Auckland, PM Modi will hold bilateral discussions with Prime Minister Luxon and review the entire gamut of the bilateral relationship, which has seen significant progress in the last two years, especially in the areas of trade and commerce and defence.
While in Auckland, the Prime Minister will also interact with prominent business and sports personalities. He will also address a large gathering of the Indian diaspora during the visit.
Indo-Pacific focus
New Zealand will be the final destination of PM Modi’s three-nation tour, which commenced in Indonesia on July 6 and is currently continuing in Australia. The visit forms part of India’s wider strategy to strengthen engagement with key partners across the Indo-Pacific, with particular emphasis on enhancing cooperation in trade, investment, defence, technology and critical minerals.
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The visit is also expected to further India’s Act East policy while reinforcing its commitment to a free, open and inclusive Indo-Pacific region.
The diplomatic outreach comes at a time of evolving geopolitical developments in the Indo-Pacific, including changing dynamics in US-China relations and rising concerns among several countries over Beijing’s increasingly assertive posture.
FTA to boost trade
Earlier this year, India and New Zealand concluded a Free Trade Agreement (FTA) aimed at boosting bilateral trade, encouraging investment and expanding collaboration across goods and services.
Under the agreement, all Indian exports will receive duty-free access to the New Zealand market. For India, the pact strengthens its presence in a high-income Pacific economy, while for New Zealand, it provides greater access to one of the world’s fastest-growing major economies amid continued uncertainty in global trade.
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