Datanomics: PM Modi's three-nation trip to boost economic engagement

PM Modi begins Indonesia, Australia and New Zealand tour as India seeks stronger trade and investment ties despite weak FY26 trade and FDI numbers

Prime Minister Narendra Modi embarked on a three-nation tour to Indonesia, Australia, and New Zealand on Monday to promote India’s bilateral economic relations with these countries. The visit is important because these countries hold a small fraction of India’s trade and foreign direct investment inflows despite existing trade agreements with Indonesia (via ASEAN) and Australia. India’s trade with these countries declined year-on-year in FY26. This decline occurred because both exports and imports decreased in absolute terms, and they also shrank as a percentage share of India’s total exports and imports, respectively. This also led to a decline in India’s trade deficit with Indonesia and Australia. India had enjoyed a trade surplus with New Zealand since FY21 but faced a deficit of nearly $23 million in FY26. The combined share of the three countries in India’s total FDI equity inflows  stood at just 0.39 per cent in FY26.