Auckland

Asthe Unified Payments Interface (UPI) expands its global footprint, New Zealand is ready to experience the digital payment freedom that comes with India's unique and indigenously developed QR-based system, its Trade and Investment Minister, Todd McClay, said on Friday. The minister stressed that New Zealand is a very open economy and one needs to fit with the rules the country has in place and “I don't think that will be such a challenge”.

"UPI can very much come to New Zealand. Ultimately, digital infrastructure is important. We're modernising our economy. We're very open to the world, and the Free Trade Agreement (FTA) with India makes it easier and creates greater certainty," McClay said.

He added that these are "many of the conversations you'll start seeing business to business as New Zealand looks to invest in India. And of course, India will be wanting to invest in New Zealand".

Prime Minister Narendra Modi arrived in Auckland for a two-day visit to New Zealand for the final leg of his three-nation visit, with his counterpart, Christopher Luxon, in a special gesture, receiving him at the airport.

Earlier this week, PM Modi announced that India’s UPI will be integrated with Indonesia’s payment system, which will enable tourists and businesses to make cross-border retail payments more easily by using their domestic payment apps.

Addressing a joint press conference with Indonesian President Prabowo Subianto in Jakarta, PM Modi said: "We are delighted that India’s UPI is set to be integrated with Indonesia’s payment system. This will boost both the ease of doing business and the ease of travel."

UPI also went live in Greece late last month, and eligible customers can transfer money instantly, securely, and seamlessly, with transaction costs reducing drastically to a fraction of conventional transfer costs.

UPI now accounts for nearly 49 per cent of the world's real-time payment transaction volume, making it the largest real-time payment system globally. It is now officially live and accepted in nearly nine countries for merchant payments and cross-border remittances.

On PM Modi's visit to New Zealand, he said, "It is very significant. It's the first visit by an Indian Prime Minister to New Zealand in 40 years. And of course, it comes just a few months after we signed our Free Trade Agreement. So, there is a very big celebration to happen here in our largest city. And all New Zealanders are looking forward to welcoming Prime Minister Modi, particularly the Indian New Zealand community, now, our third largest grouping in New Zealand, will be turning out... to get a glimpse of the Prime Minister and to make sure he feels welcome."

PM Modi will be the first official visit of an Indian Prime Minister to New Zealand in 40 years. On PM Modi's leadership, Todd McClay said, "He's played a significant role. He is liked, and he is trusted. You will see on your TV screen in the coming days, when he arrives in New Zealand, just how excited New Zealanders are. So, leadership, calm, responsible leadership, is something that is always needed in the world. With my Prime Minister Christopher Luxon and Prime Minister Narendra Modi, you have two leaders who are willing to show the world how to lead."

During his visit, PM Modi will hold discussions with PM Luxon and review the entire gamut of the bilateral relationship, which has seen significant progress in the last two years, especially in areas of trade and commerce and defence, according to the statement released by the Ministry of External Affairs (MEA).

A major highlight of the summit talks between the two leaders was their focus on significantly ramping up defence ties, especially in the maritime domain.

PM Modi will interact with prominent business and sports personalities. He will also address a large gathering of the Indian diaspora in New Zealand.

PM Modi's visit to New Zealand comes after PM Luxon's visit to India in March 2025. During the visit, PM Luxon held talks with PM Modi and President Droupadi Murmu.

While most experts called the visit a chance to elevate a long-underdeveloped relationship, several flagged concerns over anti-Indian rhetoric and resistance within the island nation’s ruling coalition to the newly signed India-New Zealand Free Trade Agreement (FTA).

The two-day visit, the first by an Indian prime minister since Rajiv Gandhi's visit in 1986, builds on Luxon's trip to India last year and will focus on deepening trade ties following the signing of the FTA.

The FTA will eliminate customs duties on 100 per cent of Indian exports and includes a $ 20 billion investment commitment from New Zealand into India over 15 years. However, it currently awaits formal ratification by both parties to enter into force.

Sekhar Bandyopadhyay, director of the New Zealand India Research Institute, said that unlike the 1986 visit -- a public relations success -- this one is "mired in political controversy from the beginning," with a coalition partner in the New Zealand government fanning "exaggerated" fears that the FTA could fuel Indian immigration and alter demographics.

On the FTA, “India can benefit from the transfer of New Zealand’s world-class agro-technology and best practices in the production of apples, kiwi fruits and honey. Indians will have greater access to New Zealand’s service sector and labour market,” Bandyopadhyay said over email. Jacqueline Leckie, associate professor at Victoria University of Wellington, called the visit a "joyous time of celebration" for New Zealand's large Indian population. However, she also cautioned that there is “a lot of fear-mongering here about opening up Indian immigration, and it is imperative that this possibility does not exacerbate the exploitation of low-paid worker immigrants from India”.

Nicholas Smith, senior lecturer at the University of Waikato, called the visit a potential "watershed" since New Zealand rarely hosts leaders of “Modi's stature.”

New Zealand First, a coalition partner in the current government, remained an obstacle to the FTA, and the visit’s outcome would be signalling that the deal is "worth investing in," he said.