On March 17, 2025, Indian Prime Minister Narendra Modi met with New Zealand Prime Minister Christopher Luxon in New Delhi to strengthen bilateral relations across various sectors. A significant outcome of their discussions was the decision to revive negotiations for a Free Trade Agreement (FTA) that had been stalled for over a decade. This move aims to enhance economic ties, with bilateral trade between the two nations standing at $1.7 billion in the 2023-24 financial year.

The leaders signed agreements to bolster cooperation in defense, food processing, pharmaceuticals, renewable energy, and critical minerals. Luxon emphasized New Zealand's commitment to deepening relations with India across multiple domains, including trade, security, education, and tourism.

Additionally, New Zealand formally joined India's Indo-Pacific Ocean's Initiative (IPOI) and the Coalition for Disaster Resilient Infrastructure (CDRI), reflecting a shared vision for a free, open, and inclusive Indo-Pacific region.