New Zealand has concluded negotiations on a Free Trade Agreement with India, creating a significant opportunity for businesses that want to grow in one of the world’s fastest expanding markets. According to the Ministry of Foreign Affairs and Trade (MFAT), the agreement will provide preferential access for 95 percent of New Zealand’s current exports over time, with more than 50 percent receiving full tariff elimination on day one. This is a moment worth your attention, whether you export today or are considering India in your long‑term strategy.
India’s economy is projected to become the third largest globally in the coming years, and its middle class is expected to exceed 700 million within five years. For New Zealand businesses, this creates demand for quality products and services across a diverse set of industries.
At Moore Markhams, we know you want clear, practical insights on what this means for your business and how to make the most of the opportunities ahead.
A more level playing field for New Zealand exporters
MFAT confirms that the agreement delivers meaningful tariff reductions across a wide range of goods. More than 80 percent of New Zealand exports will receive full tariff elimination once the agreement is fully phased in, offering improved certainty and reduced costs for businesses trading with India.
Key tariff benefits include:
- Forestry: over 95 percent of exports will enter tariff free immediately from entry into force.
- Sheep meat and wool: tariffs eliminated immediately on day one.
- Fish and seafood: tariffs phased out over seven years.
- Horticulture: valuable new quota access for kiwifruit and apples, with volumes starting above recent average trade and increasing over time.
- Wine: tariffs reduced by 66 to 83 percent over ten years, improving competitiveness compared to India’s existing FTA partners.
- Mānuka honey: tariffs reduced by 75 percent over five years.
MFAT also highlights that the average tariff applied to New Zealand’s current exports will drop to just three percent once the agreement is implemented.
This positions New Zealand exporters more competitively against countries that already benefit from preferential access.
Implications for businesses exporting or entering the Indian market
If you export to India today, the FTA may reduce your landed costs which provides an opportunity to reinvest in growth, review your pricing strategy or product development. For those considering India for the first time, the agreement offers a more predictable border environment, streamlined customs processes and lower barriers to entry.
MFAT notes that India Customs will release all goods within 48 hours, and aims to do so within 24 hours for perishable products. This supports exporters of horticulture, seafood and any product sensitive to time.
Opportunities for import and export firms across sectors
Importers should also take note. The FTA is expected to increase the variety and competitiveness of Indian-made goods in New Zealand. MFAT confirms that Kiwi consumers and businesses could benefit from lower prices on Indian-made electrical goods, machinery, fabrics and textiles.
This opens possibilities for businesses that rely on Indian inputs or finished goods, especially in retail, electronics, industrial equipment and textiles.
Manufacturing and supply chain implications
Manufacturers may see supply-chain advantages as tariffs reduce on industrial products, metals and dairy-based preparations. Tariffs on most industrial goods will be eliminated immediately or phased out over three to ten years.
Agriculture: meaningful access despite dairy limitations
While dairy access remains modest, MFAT confirms a fast-track mechanism for duty-free supply of New Zealand dairy ingredients into India for further manufacturing and export. This creates a commercial opening for businesses producing value-added dairy products or specialised ingredients.
The horticulture sector, however, sees some of the most significant gains, with tariff elimination or reductions across cherries, avocados, blueberries, persimmons and more.
How to prepare your business for these changes
To make the most of the FTA, we recommend:
- Reviewing where your products fall within the tariff schedule
- Modelling cost savings over the phased reduction periods
- Reassessing distribution and logistics partnerships in India
- Exploring opportunities to diversify supply chains with Indian producers
- Considering whether India should now become part of your long-term export plan
MFAT confirms the agreement will be reviewed one year after it enters into force, giving businesses the chance to advocate for future improvements.
We are here to support you
The New Zealand–India Free Trade Agreement creates a genuine opportunity for growth, diversification and resilience. Our team at Moore Markhams is ready to help you understand the implications for your business and plan your next steps with confidence.
If you want to explore how your business can make the most of this agreement, we are here whenever you need us.
