New Delhi, March 18 -- India and New Zealand on Monday firmed up an agreement to bolster defence cooperation with an eye on ensuring an open and stable Indo-Pacific, even as Prime Minister Narendra Modi flagged New Delhi's concerns about activities of pro-Khalistan elements to his counterpart Christopher Luxon.

The two sides also announced the formal launch of negotiations on a free trade agreement and a pact for mobility of professionals and skilled workers, and unveiled a range of measures, from cooperation in digital payments to an arrangement for easier movement of goods, to enhance two-way trade from the current level of about $1.8 billion.

"We have decided to strengthen and institutionalise our defence and security partnership," Mod...