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March 11, 2025

Luxon’s India Visit to Strengthen Trade and Security Ties

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Photo source: FMT, MEA Photo Gallery, Flickr

New Zealand Prime Minister Christopher Luxon will arrive in India on March 16 for a four-day visit aimed at deepening economic, trade, and security ties between the two nations. It will be Luxon’s first visit to India as prime minister and a significant step in enhancing bilateral relations.

Accompanied by one of the largest delegations a New Zealand leader has ever travelled with, Luxon’s visit will include high-level talks with Indian Prime Minister Narendra Modi, a keynote address at the 10th Raisina Dialogue, and business engagements in New Delhi and Mumbai.

Expanding Economic Cooperation

A major focus of Luxon’s visit is increasing trade and investment between New Zealand and India. Speaking ahead of his trip, Luxon pointed to India’s growing economic stature, noting that its middle class presents “huge trade opportunities.”

Trade between the two countries remains modest, with India accounting for only 1.5% of New Zealand’s exports. Luxon has expressed his determination to change this dynamic, pushing for a “much more comprehensive economic partnership.” While a formal free trade agreement (FTA) is not currently on the table, Luxon has suggested that alternative trade frameworks, similar to Australia’s “early harvest” deal, could be explored.

However, trade negotiations are expected to face hurdles, particularly in the dairy sector. India’s dairy sector consists mainly of small-scale rural farmers who are concerned about competition from New Zealand’s large-scale producers. Luxon acknowledged these challenges but insisted that New Zealand should not shy away from engaging with one of the world’s largest economies.

Positioning New Zealand as an Investment Hub

Another key objective of the visit is to promote New Zealand as a destination for Indian businesses, investors, and skilled professionals. Luxon will meet with business leaders in Mumbai to discuss investment opportunities across sectors such as agriculture, renewable energy, and technology.

“The large and growing Indian diaspora make significant contributions to New Zealand,” Luxon said, highlighting the presence of Kiwi-Indians in his delegation. He also noted the importance of strengthening educational and cultural ties between the two nations.

Strengthening Security and Strategic Cooperation

Luxon’s visit also carries geopolitical significance, particularly in the context of regional security. India is a key player in the Indo-Pacific, and New Zealand sees it as an important partner in maintaining stability in the region.

India is “very much aligned” with New Zealand on security and stability, Luxon said before his departure. “There’s a lot more that we can do in a defence joint exercises, visits, a whole bunch of different things that we can do in that space.”

His comments come amid growing concerns over China’s assertiveness in the Indo-Pacific. Last month, China conducted live-fire naval exercises in the Tasman Sea, raising security concerns in New Zealand and Australia. Luxon is expected to discuss potential defence collaborations with Modi, although details of any new agreements remain unclear.

High-Profile Delegation and Key Engagements

Luxon is joined on this visit by Trade and Investment Minister Todd McClay, Tourism and Hospitality Minister Louise Upston, and Ethnic Communities Minister Mark Mitchell. The delegation also includes senior business leaders, members of the Kiwi-Indian community, and government officials.

During his time in New Delhi, Luxon will meet with Prime Minister Modi and President Droupadi Murmu on March 17. Modi is set to host a lunch in Luxon’s honour following their discussions. The two leaders are expected to explore a broad range of topics, including trade, security, and investment opportunities.

As the Chief Guest at the Raisina Dialogue, India’s premier foreign policy and security conference, Luxon will deliver a keynote address. His speech is expected to discuss New Zealand’s commitment to the Indo-Pacific region and its evolving relationship with India.

In Mumbai, Luxon will engage with Indian business leaders and representatives from various industries on March 19-20 before concluding his visit.

Future Outlook for New Zealand-India Relations

Luxon has stated that strengthening ties with India is a top priority for his government. His visit follows a year of renewed diplomatic efforts between the two nations, and he has signalled a long-term commitment to building a broad-based, sustainable partnership.

While challenges remain—particularly in trade negotiations—both nations appear keen on expanding collaboration. With India’s economy projected to become the world’s third-largest by 2030, New Zealand’s engagement with the country could play a critical role in shaping its economic and geopolitical strategy in the years ahead.