NZ-India FTA already boosting exports

New Zealand exporters are seeing major gains in India as demand grows for high-quality Kiwi products, and the Free Trade Agreement hasn’t even come into force yet, Trade Minister Todd McClay says.

“The New Zealand-India FTA has been signed and is now before Parliament. We expect it to enter into force later this year, but we’re already seeing a strong halo effect. Export volumes are up because businesses and customers can see the quality of what New Zealand has to offer.

“We’ve seen this pattern with other trade deals. Exports start growing as soon as people spot the opportunity, and the India FTA is no different. The benefits will only grow once the agreement is up and running.”

On entry into force, 57 per cent of New Zealand exports to India will be tariff-free from day one, with more benefits phasing in over time.

Strong momentum for apples

Apples are a stand-out. Since negotiations began, volumes have jumped 63 per cent on the 2024 season, from 27,000 tonnes to 45,000 tonnes so far this year with the season still going. In just two years India has climbed from our seventh-largest apple market to our fourth.

“Once the FTA takes effect, apple tariffs halve to 25 per cent from day one on an initial quota of 32,500 tonnes, rising to 45,000 tonnes by year six. That’s a real financial boost for growers,” Mr McClay says.

Significant gains for kiwifruit growers

Kiwifruit growers also stand to gain. The deal delivers tariff-free access within a new quota starting at 6,250 tonnes and rising to 15,000 tonnes by year six, with tariffs halved outside the quota from the start. The industry expects around $125 million in tariff savings over five years.

Forestry and wool sectors benefiting

The engagement is flowing through to other sectors too. In June, Matariki Forests sent its first shipment of logs from Bluff to India since 2020, and chip and pulp exporters are reporting strong momentum. New Zealand recently hosted Indian wool delegations looking to access our premium fibres and expertise in processing, technology and advisory services.

Tourism growth underlines people-to-people links

Tourism is another bright spot. Visitor arrivals from India are reaching new heights even before the FTA takes effect. April 2026 saw around 8,000 Indian visitors, well up on the same month in previous years.

Air New Zealand just announced it is working on joint venture plans with Air India that would allow it to start the first direct services between our countries.

Securing better access for wine and services

There is also more on the table for wine and services. India agreed to improved access for both in its recently concluded agreement with the European Union, and under the Most Favoured Nation clause in our FTA, New Zealand automatically picks up those better terms once our agreement is in force.

“This is exactly why timely ratification matters. Getting our agreement in force ahead of the EU’s means New Zealand exporters capture those improved terms from day one. 

“This momentum is down to the hard work of New Zealand exporters who got in early, built relationships and positioned themselves to make the most of the FTA when it kicks in. I’m confident we’ll see plenty more success stories in the months ahead,” Mr McClay says. ...