"The sheer size of India and its growing middle class make it an aviation force that will positively impact international traffic flows,'' said Luxon.
"Close to 90,000 people currently travel between India and New Zealand every year and this number is growing.
"This codeshare agreement will provide greater choice and convenience for those travelling between our two countries in both directions."
Air India flies a Dreamliner Boeing 787-8 four times a week to Sydney and three times a week to Melbourne.
Codeshare services are expected to go on sale in the coming months.
Under codeshares, one carrier markets service and puts its code on another carrier's flights.
This offers airlines an opportunity to provide service to destinations not on their network.
