New Zealand and India announced on Saturday a “strategic partnership” encompassing defence and security, during a landmark visit by Prime Minister Narendra Modi.

Prime Minister Christopher Luxon feted his guest with an indigenous Maori welcome and guard of honour, seeking to expand relations after signing a free-trade pact in April that he has touted as an economic boon.

Modi’s visit, at the tail end of a July 6-11 tour that has also taken him to Indonesia and Australia, came in the aftermath of China’s test-fire of a ballistic missile into the Pacific Ocean on Monday, stirring unease in the region.

It was the first visit to New Zealand by an Indian prime minister in 40 years, a sign of Delhi’s deeper engagement at a time of strengthened Chinese diplomatic and military presence in the Pacific.

Modi described the creation of the strategic partnership as a “milestone” that would inspire greater energy and confidence, as he was hosted by the New Zealand leader at Government House in Auckland.