India's leader wants more trade with this country and ultimately both nations will aim for a free trade deal, the prime minister says.

The Government wants to secure a Free Trade Agreement with India this term, and Christopher Luxon says his first meeting with Prime Minister Narendra Modi was an important step before he visits India next year.

He is in Vientiane, Laos for the East Asia Summit and has met several leaders ahead of the start of the forum.

On the meeting with Modi on Thursday night, Luxon said: "We got on really well. He was very warm and I have a lot of respect for him and for India ... we talked about these are two countries that should have a broader and deeper relationship."

The two leaders discussed building ties in areas such as trade, space, agri-tech and education.

"We spent a lot of our conversation about where are the areas in trade that we could advance, where there is common interests and where it would be mutually beneficial for both countries."

The summit itself kicked off shortly after 4PM NZT, bringing together representatives from all 18 member countries.

Shortly after arriving and settling in, Luxon made a beeline for Modi. They shook hands and briefly spoke. As Luxon returned to his seat, he paused to shake the hands of US Secretary of State Antony Blinken. Luxon was seated between the US and Japan.

Media were asked to leave the room after the leader of Laos made opening remarks.

Luxon believes Modi is interested in India doing more trade with this country and eventually cementing the arrangement with a free trade deal.

There was a warm relationship between the two leaders, Luxon told media ahead of the summit.

"There is massive appetite" to build the ties and it would be exciting if New Zealand could get better access into India, Luxon said.

Modi has invited Luxon to New Delhi next year and it would be "a big deal and a big focus", the prime minister said.

The relationship has been neutral until now, Luxon said, and a big delegation would accompany him on his visit.

India will be the world's third largest economy by the end of the decade with huge numbers of people going into the middle class and the need for a lot more infrastructure.

The two leaders also sat together for the summit's gala dinner.

"I really enjoyed talking to him over dinner about some of the challenges, what he's dealing with in India. They've got massive amounts of growth, huge numbers of people going into the middle class, and therefore they've got massive infrastructure demands and pressures across the country as they continue to become wealthier as a function of their success," he said.

It had been a very successful day with bilaterals with the leaders of Cambodia, Vietnam and India as well as catchups with the Australian and Canadian prime ministers. He had also attended the gala dinner which was "a good opportunity to connect with a number of leaders".

"We leave here in good shape and the relationships moving in the right direction across Asean."

He said he had briefly spoken to Japan's new prime minister Shigeru Ishiba, and China's premier Li Qiang.

Russia's foreign minister Sergey Lavrov is also in Laos for the summit.

"That won't be someone I'll be talking to," Luxon said.

Later on Friday, he will meet with recently appointed Thailand prime minister Paetongtarn Shinawatra and Philippines president Ferdinand Marcos, and attend the East Asia Summit itself.

He expected the summit to be an open conversation, with regional security set to dominate. He said major players with differing views would all be part of the conversation.

"The point that I've been making consistently in these global forums is that our economic interests and our security interests are really linked."

With the one-year anniversary of the election on Monday, Luxon was asked if the country was in a better place.

He said although the cost of living had made it tough for Kiwis in 2024, there were "green shoots" apparent as well as encouraging signs, with falling inflation and interest rates dropping. After that economic growth and better employment numbers would follow.

"The last government put New Zealand into a ditch, we're hauling the car out of the ditch, we're getting into first and second gear and our goal is to get moving at top speed down the highway. It's going to take some time but we should come out at the bottom and we're on the way up."

Luxon is due to leave Laos this evening, and is expected back in New Zealand early Saturday.

rnz.co.nz