The India-New Zealand Free Trade Agreement (FTA) takes effect on Tuesday, eliminating customs duties on Indian exports to New Zealand while introducing tariff preferences for a range of New Zealand products entering the Indian market.
Under the deal, all Indian exports will enjoy duty-free access to the New Zealand market. In contrast, India’s tariff reductions for New Zealand goods will differ by product category, with some concessions implemented immediately and others phased in over a defined period.
The agreement will also provide temporary work visas for eligible Indian professionals.
India has started extending preferential tariff treatment to selected imports from New Zealand. The measures include duty-free market access for certain sheep meat, wool and wood products, while tariff rates on other goods will be lowered progressively in line with the agreement’s schedule.
Tariffs on wine imports will be determined by the value of each 750 ml bottle. During the first year of the agreement, wine valued below $5 will attract a 150% tariff, wine priced between $5 and under $15 will face a 95% duty, and wine valued at $15 or above will be subject to a 70% tariff, calculated on a CIF basis.
The agreement also grants preferential market access to certain New Zealand agricultural products through tariff-rate quotas. Eligible kiwifruit priced at $1.80 per kg or more will qualify for a duty-free quota of 6,250 tons in the first year. The apple quota will begin in the second year, allowing 35,000 tons to enter India at a 25% tariff, down from the existing rate of 50%. Certified Manuka honey will also benefit from reduced tariffs under a quota system. For the remainder of 2026, the notified quota stands at 40 tons, with lower duties applying to eligible imports priced at $20 or below $30 per kg. The annual quota will increase to 200 tons, while tariffs will be reduced further over five years.
India has excluded several sensitive sectors from the tariff concessions, including dairy products, sugar, edible oils and certain agricultural commodities. Imports of animal meat are likewise excluded, with the exception of sheep meat covered under the agreement.
In addition, two Temporary Employment Entry visa pathways for eligible Indian nationals will become available from October 20. The combined cap is set at 5,000 visa holders at any given time, with each visa valid for three years.
Several provisions of the agreement will be implemented gradually over the coming years. New Zealand will gradually extend its tariff concessions. New Zealand has also pledged to facilitate investments worth $20 billion in India over the next 15 years. The agreement further aims to double bilateral trade in goods and services, targeting NZ$7 billion by 2030.
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