UPI, Dairy And Healthcare: How India-New Zealand FTA Will Deepen Bilateral Ties

On deepening bilateral ties with New Zealand, PM Narendra Modi said both countries were preparing the blueprint for trust, technology and talent, whilst noting that unified payments interface (UPI) will soon be integrated with New Zealand's payment system.

"To make our strategic partnership meaningful, we are transforming the strengths of both countries into practical cooperation. In the area of fintech, we are going ahead in connecting India's UPI and New Zealand's payment system," he said.

"In agriculture, dairy and food processing, we have prepared a strong blueprint for cooperation. This will benefit our farmers and livestock owners. In traditional medicine, New Zealand and India have prosperous and living traditions," he added during his Auckland visit.

On enhancing cooperation in the healthcare sector, PM Modi said, "Today, we have agreed on increasing the role of traditional medicines in our health cooperation. Our increasing cooperation in defence and security is a symbol of our deep strategic trust."

Further, he noted that both countries had also agreed upon a framework for maritime cooperation in the Indo-Pacific, logistic support and hydrography.  

PM Modi's visit to New Zealand comes after the historic free trade agreement (FTA) was inked earlier this year. 
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The FTA is expected to build a strong foundation to double our trade in the backdrop of New Zealand's 20 billion dollar investment commitment in India, which will create fresh opportunities to New Zealand's companies to be long-term partner in India's growth story."

According to a report by Rubix Data Sciences, total merchandise trade between the two countries recorded an 8 per cent CAGR from FY22 to FY26, reaching USD 1,155 million (USD 1 billion), despite easing from the FY25 peak of USD 1,298 million.

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The report highlighted that India's trade balance with New Zealand shifted from a USD 113 million surplus in FY22 to a USD 23 million deficit in FY26, as faster import growth outpaced exports.

India's export momentum eased in FY26, declining 20 per cent year-on-year to USD 566 million from USD 711 million in FY25. Conversely, imports from New Zealand showed sustained growth, rising to USD 589 million in FY26.