India FTA now open for business
New Zealand exporters can start using the New Zealand-India Free Trade Agreement from today, with tariffs removed on more than half of New Zealand’s exports to India, Trade and Investment Minister Todd McClay says.
“We launched talks in March 2025 and, by working harder and faster, concluded them in just nine months. That’s a record for India on a comprehensive trade agreement, and it’s one of the highest quality deals they’ve signed. Today, just 19 months after we started, it’s in force and working for exporters,” Mr McClay says.
From today, almost 57 per cent of New Zealand exports to India are tariff-free. That rises to 82 per cent over time. In total, 95 per cent of current exports will have tariffs removed or cut.
Key outcomes from today include:
- tariffs removed on sheep meat, wool and coal
- tariffs removed on more than 95 per cent of forestry and wood exports
- preferential quota access for apples, kiwifruit and milk albumins
A second round of tariff cuts follows on 1 January 2027.
“Our winemakers have been shut out of India by tariffs of 150 per cent. Those will now come down to 25 or 50 per cent over 10 years and we will also now get the better access negotiated by the EU,” Mr McClay says.
“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,” Mr McClay says.
“The gains go well beyond exports. They reach suppliers, local businesses and the towns that depend on them.
“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.”
New Zealand Trade and Enterprise is running a programme to help exporters use the agreement, with advice, market insights and connections in India.
“I’d encourage any business with an eye on India to talk to NZTE and get started,” Mr McClay says.
More information is available at mfat.govt.nz/indiafta.
Notes to editors:
NZTE’s India FTA exporter programme includes:
- An export capability webinar series: covering practical market intelligence, supply chains, market entry, consumer trends, and sector-specific insights.
- Participation in major trade shows in India: Mumbai Wood (completed), ProWine Mumbai, AAHAR and IndiaWood.
- Sector-focused events in New Zealand: providing tailored advice, peer learning and practical guidance for exporters.
- A dedicated information hub on NZTE’s website.
Key FTA outcomes for New Zealand include:
- Tariff elimination or reduction on 95 per cent of our exports once fully implemented.
- Duty-free access on 57 per cent of New Zealand’s exports from day one, increasing to 82 per cent when fully implemented, with the remaining 13 per cent being subject to sharp tariff cuts.
- Immediate tariff elimination on sheep meat, wool, coal and over 95 per cent of forestry and wood exports.
- Duty-free access on most seafood exports, including mussels and salmon, over seven years.
- Duty-free access on most iron, steel and scrap aluminium, over 10 years or less.
- Duty-free access for most industrial products, over five to 10 years.
- 50 per cent tariff cut for large quota of apples – nearly double recent average exports.
- Duty-free access for kiwifruit within a quota almost four times our recent average exports, and tariff halved for exports outside of quota.
- Duty-free access for cherries, avocados, persimmons and blueberries, over 10 years.
- Tariffs on wine reduced from 150 per cent to either 25 or 50 per cent (depending on the value of the wine) over 10 years plus a Most Favoured Nation (MFN) commitment.
- Tariffs on mānuka honey cut from 66 per cent to 16.5 per cent over five years.
- MFN status and liberalisation across key services exports.
- Duty-free access for bulk infant formula and other high-value dairy preparations over seven years.
- 50 percent tariff cut for high value milk albumins within a NZ-specific quota equal to current export volumes.
- An arrangement on duty-free access for dairy and other food ingredients for re-export.
