NEW ZEALAND BUSINESS NEWS
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Tariffs on eligible New Zealand wine entering India will fall from 150 per cent to either 50 per cent or 25 per cent over the next decade, following the India-New Zealand Free Trade Agreement coming into force today. The rate a shipment attracts will depend on the wine’s value.
New Zealand Winegrowers said the agreement gives local brands more confidence to build a presence in India, one of the world’s fastest-growing economies. Export receipts from India are small at present but rose 48 per cent in the past year to just under NZ$438,000.
The deal includes a Most-Favoured-Nation commitment for wine. Should India grant more favourable wine tariffs in a future agreement with another country, eligible New Zealand wine would automatically receive the same treatment.
A dedicated annex on trade in wine, whisky and other distilled spirits sits alongside the tariff schedule. It is intended to facilitate trade through greater transparency, regulatory cooperation and clearer handling of wine-specific issues. The annex also establishes a working group to cover technical matters, labelling, and certification.
New Zealand Winegrowers chief executive Anishka Jelicich credited the speed of ratification with securing better terms than might otherwise have been available.
“By working to bring the FTA into force quickly, the Government has ensured that New Zealand will also benefit from the Most Favoured Nation preferential tariff rates that have been negotiated under the EU India FTA. Those tariff reductions are more substantial and would not have been available to us if the EU deal had entered into force first.”
India’s wine market is concentrated in Mumbai, Delhi and Bengaluru. The three cities account for half of national wine consumption and are home to about 70 million people. That population is 13 times the size of New Zealand’s and comparable to the United Kingdom’s.
Red wine makes up a significant share of imported wine, which New Zealand Winegrowers says creates room for a range of local styles alongside Sauvignon Blanc. Sales are also rising. In the year to March 2026, Maharashtra, whose capital is Mumbai, sold a record 13 million litres, or around 1.4 million cases. Imports grew 14 per cent by volume in 2025.
The tariff reductions are progressive, so the benefit builds over the ten-year window rather than arriving at once. For exporters weighing entry, the practical work is in finding distribution and building a brand in a market where relationships carry weight.
India’s only Master of Wine, Sonal C Holland, gave the keynote address at New Zealand Winegrowers’ annual Wine Business Forum in Wellington. Her message was that the agreement removes a significant barrier, but that long-term success in India will require commitment, patience and strong local relationships.
New Zealand Winegrowers said its focus is on helping members assess opportunities through practical market intelligence and insights, connections with key stakeholders, and opportunities to build brands in-market.
“Next month, we look forward to working with New Zealand Trade and Enterprise (NZTE) at ProWine Mumbai. The major international trade fair will include a 20-strong contingent of businesses showcasing New Zealand wine to the Indian trade. These types of events are incredibly valuable for our members, helping them to build distributor relationships and a pipeline in a growing premium segment,” Ms Jelicich said.
“India remains largely untapped for New Zealand wine.”
Ms Jelicich also thanked Ministers and officials for their work in securing improved access to a market she described as having considerable long-term potential.
Source: New Zealand Winegrowers
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