India and New Zealand have reaffirmed their desire to strengthen further the bilateral relationship between the two countries following the meeting of their two Prime Ministers - Indian Prime Minister Narendra Modi and New Zealand's Prime Minister John Key. The meeting took place on October 25, 2016.

In a joint statement, released by India's Ministry of External Affairs, the two leaders agreed to strengthen their commercial and trading relationship. The two-way between the two countries was now worth US$1.8 billion in goods and services annually.

This is a 42 percent increase in the past five years. But the two prime ministers believe that bilateral commercial relations could and should be even stronger.

Firstpost reports that Modi is referring to food processing, dairy, and agriculture as areas with potential for bilateral cooperation. "New Zealand's strength and capacity in these sectors can combine with India's vast technology needs to build partnerships that can benefit both our societies," he said.

The two prime ministers also committed to continuing working towards a high-quality and comprehensive bilateral Free Trade Agreement to deliver meaningful outcomes for both sides. India and New Zealand have been working on it since 2010.

Modi and Keys also announced the bilateral Double Taxation Agreement, to bring its tax cooperation provisions into line with international standard. This is a significant step that will boost services through this protocol.

The two leaders also agreed to further strengthen the political, defense and security relationship between India and New Zealand. Both countries have a stronghold in the stability and prosperity of the Asia-Pacific and Indo-Pacific regions.

The enhanced political-security relationship calls for an establishment of bilateral ministerial dialogue through annual meetings in either India or New Zealand. The two countries will also hold annual Ministry consultations at the senior official level.

India and New Zealand would also continue its negotiations for a Customs Cooperation Agreement. This will help facilitate information sharing and provide a framework for the exchange of new customs procedures and techniques.