Aotearoa has officially opened the door to one of the world’s largest and fastest-growing economies, with the New Zealand–India Free Trade Agreement now in force, removing tariffs on more than half of New Zealand’s exports to India immediately and creating significant new opportunities for exporters, regional economies and Māori businesses.
Trade and Investment Minister Todd McClay confirmed the agreement took effect on Tuesday, October 20, following negotiations that began in March 2025 and were concluded just nine months later.
The agreement provides immediate tariff-free access for approximately 57% of New Zealand’s existing exports to India, increasing to 82% as the deal is progressively implemented.
Overall, 95% of current exports will eventually benefit from tariffs being eliminated or reduced.
The Government says the agreement represents a major step towards its ambition of doubling the value of New Zealand’s exports over the next decade.
Tariffs Removed on Meat, Wool and Forestry
Among the biggest immediate beneficiaries are New Zealand’s primary industries.
Tariffs have been removed on sheep meat, wool and coal, while more than 95% of existing forestry and wood exports can now enter India duty-free.
For the red meat sector, the agreement eliminates India’s previous 33% tariff on New Zealand sheep meat, improving the competitiveness of exporters seeking to establish a stronger presence in the Indian market.
The forestry industry is also welcoming the changes.
New Zealand wood and forestry exports to India have tripled over the past three years to approximately $193 million.
The Wood Processors and Manufacturers Association estimates that tariff reductions could deliver more than $10 million annually in savings and additional revenue opportunities across the forestry and wood-processing sector.
The changes could help exporters diversify beyond established markets while supporting regional employment in harvesting, transport, manufacturing and processing.
Kiwifruit, Apples and Mānuka Honey Gain Better Access
Horticulture and specialist food exporters are also expected to benefit.
The agreement provides preferential access for several important New Zealand products.
- Kiwifruit: Duty-free access within a quota almost four times recent average export volumes, with tariffs halved on exports outside the quota.
- Apples: A 50% tariff reduction within a quota equivalent to nearly twice recent average exports.
- Mānuka honey: Tariffs reduced from 66% to 16.5% over five years.
- Cherries, avocados, persimmons and blueberries: Tariffs progressively removed over ten years.
- Seafood: Duty-free access for most products, including mussels and salmon, over seven years.
A second round of tariff reductions is scheduled for January 1, 2027.
The agreement also provides improved access for some dairy ingredients and specialised dairy products, although India’s broader dairy market remains protected.
Wine Tariffs to Fall from 150%
New Zealand’s wine industry is another potential beneficiary.
India currently imposes tariffs of up to 150% on imported wine, making it difficult for New Zealand producers to compete.
Under the agreement, those tariffs will progressively fall to either 25% or 50%, depending on the value of the wine, over ten years.
The changes are expected to improve opportunities for New Zealand winemakers seeking access to India’s expanding consumer market.
However, exporters will still need to establish distribution networks, develop customer relationships and compete with other international suppliers.
What Does the Deal Mean for the Māori Economy?
For Māori businesses, the agreement could provide opportunities across industries where Māori already have substantial commercial interests.
These include forestry, agriculture, horticulture, seafood, honey production and other export-focused enterprises.
The immediate removal of tariffs on forestry and sheep meat is particularly relevant to Māori landowners, incorporations, trusts and businesses involved in primary production.
Improved access for mānuka honey could also benefit Māori-owned producers and businesses seeking to develop premium products for international consumers.
India’s growing middle class and large consumer market may provide opportunities for Māori exporters to expand beyond traditional trading partners.
However, the agreement does not automatically guarantee increased sales or improved returns.
Businesses will still need to meet Indian regulatory requirements, establish reliable supply chains and develop relationships with customers and distributors.
The Government’s announcement does not identify a dedicated Māori export funding package as part of the agreement.
Ensuring smaller Māori enterprises can access trade advice, capital and commercial networks will be important if the benefits are to extend beyond established exporters.
Dairy Remains a Major Sticking Point
Despite the substantial tariff reductions, the agreement does not provide comprehensive access to India’s core dairy market.
India has maintained protections for its domestic dairy industry, limiting the opportunities available to major New Zealand exporters.
Fonterra has expressed disappointment that the negotiations did not secure significant new access for core dairy products.
However, the agreement includes provisions for some higher-value dairy preparations, milk albumins and ingredients used in products intended for re-export.
The distinction highlights the limits of the deal, with major gains for some industries but more restricted opportunities for others.
New Zealand Businesses Urged to Get Ready
New Zealand Trade and Enterprise is launching a programme to help exporters take advantage of the agreement.
Support includes market intelligence, practical advice on entering India, supply-chain information, sector-specific guidance and opportunities to participate in major Indian trade shows.
The programme will also provide businesses with information about consumer trends and potential commercial partners.
McClay is encouraging businesses interested in India to begin exploring the opportunities now that the agreement is operational.
Further information is available through the Ministry of Foreign Affairs and Trade at:
https://www.mfat.govt.nz/indiafta
A Major Trade Opportunity — But Not Without Challenges
India is forecast to become an economy worth approximately NZ$12 trillion by 2030, making it an increasingly important market for countries seeking long-term export growth.
The Government argues that stronger access to India will help New Zealand diversify its trading relationships and reduce exposure to uncertainty in other international markets.
Industry groups have welcomed the agreement, particularly those representing forestry, red meat and horticulture.
However, the benefits will depend on how effectively exporters establish themselves in the market and whether lower tariffs translate into stronger commercial demand.
For Māori businesses, the opportunity could be substantial, particularly in industries where iwi and Māori enterprises have existing assets, production capacity and export experience.
The challenge will be ensuring that smaller businesses and regional producers can participate alongside larger established exporters.
With the India Free Trade Agreement now officially operating, the focus shifts from negotiations to results — whether the deal can generate more exports, stronger regional economies, new employment opportunities and lasting benefits for Māori businesses and whānau across Aotearoa.
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