India FTA now open for business
New Zealand exporters can now utilise the India Free Trade Agreement, eliminating tariffs on 57% of current exports immediately, rising to 82% over time, with further cuts in 2027.
New Zealand exporters can begin using the New Zealand-India Free Trade Agreement from today, enabling tariff-free access on more than half of current exports to India. Trade and Investment Minister Todd McClay highlighted the agreement’s rapid nine-month negotiation period, concluding in March 2025, as a record for India in comprehensive trade deals. The agreement enters into force 19 months after negotiations began, providing immediate benefits to exporters.
Under the agreement, 57% of New Zealand’s exports to India are now tariff-free, with this figure set to rise to 82% over time. In total, 95% of current exports will have tariffs removed or reduced, including a second round of cuts scheduled for 1 January 2027. Wine exporters will see tariffs on their products drop from 150% to between 25% and 50% over a decade, alongside improved access negotiated by the EU.
India, one of the world’s fastest-growing economies, is projected to reach a GDP of NZ$12 trillion by 2030. The agreement allows New Zealand to secure early and favourable terms, supporting export diversification amid global economic uncertainty. Benefits extend beyond direct exporters to suppliers, local businesses, and regional economies dependent on trade.
New Zealand Trade and Enterprise (NZTE) is offering a dedicated programme to assist exporters in leveraging the agreement, including market insights, advice, and connections in India. Minister McClay urged businesses considering India to engage with NZTE for support in navigating the new trade opportunities.