PM Modi Embarks on Official Visit to New Zealand
Prime Minister Narendra Modi will depart for New Zealand on Friday at the invitation of New Zealand Prime Minister Christopher Luxon. The visit comes shortly after the finalisation of a landmark Free Trade Agreement (FTA) aimed at revitalising bilateral commercial ties, following a recent moderation in merchandise trade between the two nations.
Trade Data Highlights Recent Trends
According to a report by Rubix Data Sciences, total merchandise trade between India and New Zealand recorded an 8 per cent compound annual growth rate (CAGR) from FY22 to FY26, reaching USD 1,155 million (approximately USD 1.16 billion). However, this figure represents a decline from the FY25 peak of USD 1,298 million.
The report also noted a shift in India's trade balance with New Zealand, moving from a USD 113 million surplus in FY22 to a USD 23 million deficit in FY26. This change was driven by faster import growth outpacing exports. India's export momentum slowed in FY26, declining 20 per cent year-on-year to USD 566 million from USD 711 million in FY25. In contrast, imports from New Zealand showed sustained growth, rising to USD 589 million in FY26.
PM Modi's Statement on Bilateral Engagement
In his departure statement, Prime Minister Modi said, "My visit will meaningfully build upon the strong momentum in our bilateral ties pursuant to the visit of Prime Minister Luxon to India in March 2025." He added, "During my visit, I shall discuss with Prime Minister Luxon how to further enhance economic, trade and commercial engagements. India and New Zealand have committed themselves to strengthening bilateral trade and commercial ties with the signing of the Free Trade Agreement."
Scope for Expansion Despite Recent Slowdown
Despite a temporary 11 per cent year-on-year decline in bilateral trade from its FY25 peak, the trade volume remains well above historical levels. New Zealand is a relatively minor trading partner for India, ranking 80th in exports and 74th in imports. This positioning points to substantial scope for diversification and expansion, which the new FTA aims to unlock through improved market access and lower trade barriers.
Details of the Free Trade Agreement
India and New Zealand launched negotiations for an FTA in March 2025 and concluded the process by December 2025. The agreement was officially signed on April 27, 2026. It covers four key areas: trade in goods, agriculture and MSME development, services and technical cooperation, as well as investment, mobility, and people-to-people connections.
New Zealand is India's second-largest trading partner in Oceania, supported by a diaspora of approximately 300,000 persons of Indian origin, who make up nearly 5 per cent of New Zealand's population.
