UPDATED 12.58pm The India New Zealand Business Council says there's a lot to be gained from John Key's trip to India.

LISTEN ABOVE: NZ Herald political reporter Nicholas Jones spoke to Rachel Smalley about progress on an India trade deal

The Prime Minister has been meeting with his Indian equivalent overnight, on his first trip to New Delhi in five years.

PM @narendramodi and I met and committed to growing the NZ-India relationship, creating more opportunities for NZers and Indians. pic.twitter.com/nVJOOXq45a

— John Key (@johnkeypm) October 26, 2016

Mr Key says talking face to face makes a huge amount of difference and that should help with a free trade deal between the two countries.

"Obviously the recognition is that it takes a bit of time to work our way through the system and there are some sensitivities and we'll have to continue to work on that. This is investment about, not just what's happening today, but what's going to happen to this economy over a reasonable period of time."

Talks around a free trade deal have struggled over 10 negotiation rounds since the start of 2010.

Mr Key said it takes time to work through the issues, but progress is being made.

"That's my sense of where we're going. I think he understand completely what they need to do. I think there's some political goodwill. He looks like he's going to pay a visit to us in New Zealand and I thought it was really good, constructive, warm chemistry there."

But New Zealand Herald political reporter Nicholas Jones says in a statement after the meeting between the men in Delhi, Mr Modi's only reference was to a closer economic cooperation, no mention of a free trade deal.

He told Rachel Smalley dropping agricultural tariffs in India would be controversial because it has millions of small scale farmers.

"And the worry would be that if they opened themselves up to New Zealand dairy and meat and other agriculture products, those people could be adversely affected. It would be very controversial and could lose a lot of votes."

The INZBC's head of government relations, Wenceslaus Anthony, is travelling with Mr Key.

He said his organisation's role is to promote trade and business between the two countries, and he's confident Mr Key's meetings, like with the local Chamber of Commerce, will prove fruitful.

Mr Anthony feels the visit provides a lot of opportunity for New Zealand-based companies to gain entry to India, and vice-versa for Indian organisations.

He said they're intending to meet with India's Fair Trade Agreement negotiators. If they get to do so, Mr Anthony said they will try and push the need to establish a comprehensive, high quality FTA.

Mr Anthony said it will take time, but having these talks is important to keep the momentum going.

Problems with fraudulent behaviour by immigration agents in India, haven't had a mention in Mr Key's talks with his Indian counterpart.

Around 150 Indian students here are facing potential deportation because immigration agents in their home country forged documents on the student visa applications.

The affected students are protesting against being removed.

Mr Key says they didn't raise it at all, and neither did he.

"I didn't raise it because it's a big issue, they'll be aware of it. Our sense of it is it's not a big issue on the ground over here in India."