New Zealand Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi have agreed to strengthen bilateral ties, with a focus on trade and maritime security, according to a joint statement released on July 11, 2026. The agreement comes as Luxon continues to address concerns over a clause in the proposed India-New Zealand Free Trade Agreement (FTA) that requires the government to 'promote' investment in India.
During a press conference in New Delhi, Luxon dismissed suggestions that the clause represents a binding commitment, despite Modi referring to it as such. 'We see this as a mutual understanding to foster economic cooperation, not a legal obligation,' Luxon stated. The FTA negotiations, which have been ongoing for several years, aim to reduce tariffs and increase trade between the two nations, which currently stands at approximately $1.5 billion annually.
The maritime security component of the partnership includes joint naval exercises and information sharing to ensure stability in the Indo-Pacific region. Both leaders emphasized the importance of a free and open Indo-Pacific, aligning with their respective strategic interests. The agreement also covers cooperation in areas such as renewable energy, agriculture, and technology.
Critics in New Zealand have raised concerns about the potential impact of the FTA on local industries, particularly dairy and agriculture, which could face increased competition from Indian imports. However, Luxon assured that the deal would include safeguards to protect New Zealand's interests. The final text of the FTA is expected to be finalized by the end of 2026, pending parliamentary approval in both countries.
