New Zealand and India ratify free trade agreement
New Zealand and India have formally ratified the India-New Zealand Free Trade Agreement, marking the start of an exciting new chapter in our growing relationship, Trade and Investment Minister Todd McClay says.
Mr McClay exchanged formal documents with India’s High Commissioner to New Zealand, H.E. Ms Muanpuii Saiawi in Parliament today, confirming that New Zealand has completed all its necessary domestic procedures.
“The New Zealand-India FTA will level the playing field and unlock access for Kiwi businesses in one of the fastest growing markets in the world,” Mr McClay says. “As global markets become more uncertain, it has never been more important for New Zealand exporters to diversify, build resilience and pursue new opportunities.
“The benefits of the FTA are substantial. Fifty-seven per cent of New Zealand exports to India will be tariff free on day one, including sheep meat, wool and coal exports, as well as over 95 per cent of forestry and wood exports. Getting it into force quickly means exporters will benefit from a second round of tariff cuts on 1 January 2027. Exporters will also benefit from preferential quota access into India for New Zealand albumins, apples and kiwifruit.
“It is a great result for New Zealand businesses and for 1.4 billion Indian consumers. Beyond new market access, the deal offers more certainty for our services exporters, for investors, and for Kiwi businesses looking to increase their footprint in India.”
The FTA will enter into force on 20 October 2026.
Key outcomes for New Zealand include:
- Tariff elimination or reduction on 95 per cent of our exports when 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.
