Modi's Auckland visit ends without resolving $34b investment question

Saturday, 11 July 2026

Snipers, a hotel suite with a panic room and a sold-out arena: Modi's Auckland visit had all the trappings of a historic occasion - except a $34b billion question that remains unresolved. Amelia Wade reports.

India Prime Minister Narendra Modi's visit to New Zealand went off - almost - without a hitch.

But the two countries are still not singing from the same songsheet with respect to a USD$20 billion (NZ$34b) investment commitment New Zealand has made.

Having touched down the night before, Modi’s Auckland visit on Saturday was a tightly choreographed full day programme, with heavy security — including anti-terror squads, bomb-sniffing dogs and reportedly snipers on rooftops, though the Sunday Star-Times could not spot any.

As a 'Modi-cade' of at least 10 vehicles moved around the city, the police Eagle helicopter kept watch from the skies.

Modi is understood to have stayed at the Cordis Hotel because its presidential suite has a panic room and can be “defended”, not being situated over water.

The visit drew large crowds from the Indian diaspora, both supporters and detractors. This came to a head outside the sold-out “Kia Ora Modi” event at Spark Arena, which has capacity for 12,000 (though there were some empty seats). Supporters filled the venue while anti-Hindutva protesters rallied outside, tearing up Indian flags and brandishing signs saying Modi was an “enemy of Sikhs”.

A handful of anti-immigration protesters carrying 'de immigrate' banners were held back by a line of hundreds of police.

Inside, the crowd's energy built through the wait for their leader and erupted when he arrived, shortly before 8pm, to fanfare and a hype video. As Modi and NZ PM Christopher Luxon walked in, a promotional video played, built around the 'four Cs': culture, cricket, community and commerce.

Luxon was cheered after almost every line of his 15-minute speech, visibly energised by the reception.

'I have never felt an atmosphere like this in the world.'

Luxon's popularity, though, was no match for Modi's. The crowd chanted his name and gave him a standing ovation lasting close to five minutes when he took the stage.

He spoke for more than 45 minutes, entirely in Hindi. At the start, he removed the scarf he was wearing, saying he'd been given it on his last visit to New Zealand 20 years ago and had treasured it — much like the country itself — ever since.

At many points, he had the adoring crowd in stitches.

It was a climactic end to a day of formal engagements, meetings and celebrations that went almost without a hitch, save for a technical audio glitch and a schedule that slipped further behind as the day went on.

But the day left open the question of how firm New Zealand's expectation is to deliver the billions in foreign direct investment it has promised as part of the landmark free trade agreement it secured with India earlier this year.

At both of his public engagements, Modi said India welcomed “the investment commitment”.

'This will give the companies of New Zealand the opportunity to be long-term partners in India's growth story.'

Jeyen Mehta, managing director of Indian dairy cooperative Amul, said New Zealand “has promised an investment of $20 billion across 15 years”.

Luxon did not address the investment commitment in his public remarks. Asked at a 10-minute press conference at the day's end whether the two countries shared the same understanding of it, he said they did.

'We've been through this before. It's very clearly understood on both sides. It's a commitment to promote investment into India from New Zealand and vice versa.'

A fact-sheet from the Indian government states New Zealand 'commits to facilitating USD 20 billion in investment into India supporting opportunities for MSMEs [Micro, Small, and Medium Enterprises], women-led enterprises, and employment generation.'

But the text of New Zealand’s version says the country 'shall promote' foreign direct investment from investors into India, “with the aim to increase such investment by US Dollars 20 billion within 15 years”.

Clawback provisions written into the deal could see New Zealand pay tariffs if it fails to reach the investment commitment — a mechanism questioned by NZ First leader and Foreign Minister Winston Peters.

Asked what penalty New Zealand would face for falling short, India's foreign secretary east, Rudrendra Tandon, said: 'There is no specific penalty that will follow.'

Behind the scenes, Indian officials moved to lower expectations of clarity, suggesting the agreement needs to be ratified before such details are worked through. One diplomat said both sides understood the USD$20b figure to be “aspirational”.

Throughout the day, Luxon spoke of the opportunity the free trade agreement gives New Zealand businesses, providing access to India's increasingly wealthy population of 1.4 billion.

'Get on a plane and go learn the Indian consumer,' Luxon told business leaders in the afternoon.

That morning began at Government House in Epsom, with streets nearby lined with police and security. The first engagement was already running about 20 minutes behind schedule, after Modi was delayed leaving his suite at the Cordis.

Ngāti Tūmatauenga, the Defence Force's iwi, welcomed Modi with a haka and wero, with kaumātua Joe Harawira translating in his ear. After the guard of honour and a 21-gun salute, the two prime ministers held a one-on-one discussion, later described by an Indian diplomat as 'intense'.

Their next meeting was the formal bilateral, from which National's coalition partners were conspicuously absent.

Peters, who has been highly critical of the FTA, is currently overseas and there were no ACT ministers there.

In the room were Finance Minister Nicola Willis, Trade Minister Todd McClay, Ethnic Communities Minister Mark Mitchell, Defence Minister Chris Penk and Tourism Minister Louise Upston. Luxon said the invite list was decided by portfolio.

'It was just about having relevant ministers there.'

A technical fault affecting the audio left translators temporarily unable to do their jobs. Luxon joked about whether the problem was “with the audio, or with the prime minister”.

Once resolved, he told the Indian delegation: 'Today's focus is about more than just the FTA — it's about where we go next and how we broaden that out.'

It was quickly announced that India and New Zealand would formally enter a strategic partnership.

'We are living in a very complex and volatile and uncertain world, as you and I have spoken about before,' Luxon told Modi. 'That is why having trusted friends like India is so important.'

The agreement includes closer defence cooperation, including naval exercises, alongside stronger ties in trade, diplomacy, culture, sport and science, the two countries said in a joint statement.

The leaders said their nations share an interest in a 'free, open, peaceful and prosperous Indo-Pacific'. Luxon said China's missile test in the Pacific this week was 'quickly canvassed' in the talks.

The countries also signed a memorandum of understanding establishing a Joint Working Group on Counter-Terrorism, intended to provide a framework for information and knowledge sharing.

This raised questions on both sides about whether it would allow Modi's Hindu nationalist administration to receive information about, or respond to, what it regards as anti-India activity in New Zealand.

During Luxon's visit to India, Modi said the two countries would work together to quash 'anti-India' activities and 'some illegal elements' in New Zealand — remarks widely read as referring to the Khalistan movement, which advocates for an independent Sikh state.

Luxon denied the working group was a response to Modi's comments in India.

'This is really about us saying that we're taking the three pillars of our relationship — economics and trade, defence and security and, obviously, people to people,' he said.

'This is in the defence and security pillar to say, look, we're going to share our assessments of terrorism in the different parts of the world that we operate within. That would be quite normal and quite good advice that we do exactly that.'

Asked about this by New Zealand media, India's foreign secretary east, Rudrendra Tandon, sidestepped the question.

'New Zealand and India are very like-minded and touch on this entire issue of counter-terrorism and violent extremism.'

Outside the Kia Ora Modi rally on Saturday night Indian Sikhs protested India's democratic record and the persecution they - and members of other religions - have faced under Modi's administration.

Media were told not to ask Modi, who has not given a press conference since his 2024 re-election, any questions, on threat of being removed from the official programme.

The Star-Times tried anyway, asking Modi, as he inspected high-tech sports equipment, why he wasn't speaking to New Zealand journalists. The question was ignored and quickly shut down by officials and Luxon's staff.

The day appeared carefully designed to minimise friction. Luxon said the visit sent 'a clear message'.

'New Zealand and India are taking our relationship to the next level.'