NEW ZEALAND BUSINESS NEWS
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Exporters can begin using the New Zealand-India Free Trade Agreement from today. Almost 57 per cent of New Zealand exports to India are now tariff-free, according to Trade and Investment Minister Todd McClay.
That share rises to 82 per cent over time. In total, 95 per cent of current exports will have tariffs removed or cut. A second round of tariff cuts follows on 1 January 2027.
McClay said negotiations began in March 2025 and concluded in nine months. He described the pace as a record for India in securing a comprehensive trade agreement and said it was one of the highest-quality deals India has signed. “Today, just 19 months after we started, it’s in force and working for exporters,” he said.
Tariffs are removed on sheep meat, wool and coal. Tariffs are also removed on more than 95 per cent of forestry and wood exports.
Apples, kiwifruit and milk albumins gain preferential quota access. Quota access sets a volume that can enter at a lower or zero tariff rate, which matters for seasonal produce that competes on price at the point of sale.
Wine is the longest-running change. McClay said winemakers had been shut out of India by tariffs of 150 per cent. Those tariffs will come down to 25 or 50 per cent over 10 years, and New Zealand will also get the better access that the EU negotiated.
The staged nature of the wine reduction means the benefit builds gradually rather than arriving at once. Exporters selling into India will need to track which rate applies to their product and when, because the schedule differs by category.
McClay framed the agreement around scale and timing. He said India is one of the fastest-growing economies in the world and is forecast to reach NZ$12 trillion by 2030. “Getting in early, on good terms, matters,” he said.
He also argued the benefits extend past the exporter’s gate. “The gains go well beyond exports. They reach suppliers, local businesses and the towns that depend on them,” he said.
On the wider economic backdrop, McClay said the deal supports diversification at a time of uncertainty. “With the world economy so uncertain, the India Free Trade Agreement helps our exporters diversify and grow. It’s a big step towards doubling the value of our exports in 10 years,” he said.
For firms already selling into India, the immediate task is to confirm the tariff treatment of their specific goods and whether any quotas apply. The 57 per cent figure is an aggregate across the export mix, so individual products will sit on different timelines, and some will not change until the second round of cuts on 1 January 2027.
For firms considering India but not yet trading there, the agreement lowers the cost of a first shipment in the covered categories starting today. The wine schedule shows the value of planning over a longer horizon: a 10-year glide path from 150 per cent to 25 or 50 per cent rewards exporters who build distribution and brand presence before the rate falls.
New Zealand Trade and Enterprise is running a programme to help exporters use the agreement, with advice, market insights and connections in India. McClay pointed businesses towards it. “I’d encourage any business with an eye on India to talk to NZTE and get started,” he said.
Source: Beehive
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