The Prime Minister has been formally welcomed to India at the Presidential Palace in Delhi.
John Key is in India to progress free trade talks with one of the most rapidly growing economies in the world.
On Tuesday, Mr Key is due to attend a series of top level political meetings, culminating in a joint statement with the Indian Prime Minister, Manmohan Singh.
New Zealand is pushing for access for its key export products and India needs a secure food supply for its more than one billion people.
Mr Key says he acknowledges concerns about labour laws and rates and India's stance on nuclear non-proliferation.
He says, as with China, the best approach is to engage actively with countries where there are such differences of opinion.