Indian Prime Minister Narendra Modi embarked on his first official visit to New Zealand on Friday, July 10, marking the first trip by an Indian prime minister to the country in 40 years. Modi's visit follows the signing of a free trade agreement between India and New Zealand in April, which aims to eliminate duties on 100% of Indian exports while reducing tariffs on 95% of New Zealand's exports to India, according to statements from both governments.
Key Details
During his stay in Auckland, Modi is scheduled to hold bilateral talks with New Zealand Prime Minister Christopher Luxon. The discussions will cover various topics, including trade and defense cooperation. Luxon expressed optimism about the trade deal, stating that 57% of New Zealand's exports to India would be tariff-free from the outset, which he believes will significantly benefit New Zealand businesses.
Background
This visit is significant as it reinforces the growing economic ties between the two nations. The last Indian prime minister to visit New Zealand was Rajiv Gandhi in 1986. Modi's trip comes at a time when both countries are looking to strengthen their bilateral relations in the wake of the recent trade agreement.
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The strengthening of trade relations between India and New Zealand could positively influence sectors such as agriculture and manufacturing, particularly for companies involved in exports. Investors will watch for any announcements regarding specific trade initiatives or partnerships that may arise from Modi's discussions with Luxon.