On the 27th of April 2026, Trade Minister Todd McClay and Indian Commerce Minister Piyush Goyal signed a landmark Free Trade Agreement (FTA) in New Delhi.
For New Zealand exporters and businesses, this comes at a good time. India is projected to become the third largest globally, and this move decreases New Zealand’s reliance on China as a trading partner.
But how does this affect our local industries? RNZ highlights a few winners.
Clear Winners: Primary Exporters
The most immediate winners are local exporters of sheep meat, wool, forestry products and coal, who get duty-free access. These industries have long faced high Indian tariffs and should now see their cost lowered.
For forestry in particular, this tariff reduction is a significant opportunity, given India's expanding construction sector. New Zealand's timber exporters now have a good foothold in a market that’s scaling.
Seafood exporters, including mussel and salmon producers, will not see any overnight changes. But with tariffs phased out over seven years, they could have a good pathway into a growing market.
Horticulture
Kiwifruit, apples, cherries, avocados and berries all benefit from either substantial tariff reductions or duty-free quota access. In fact, New Zealand is the first country to secure preferential access for apples into India under any FTA.
The duty-free quota for kiwifruit alone is nearly four times recent export volumes to India, but cold-chain logistics will remain a challenge.
Manuka honey is another standout. India has, for the first time in any FTA, granted preferential access for honey, reducing the 66 per cent tariff to 16.5 per cent over five years for certified manuka honey.
Wine
In the long term, wine exporters will also benefit from the FTA.
India’s tariffs on wine (previously as high as 150 per cent) will be reduced to between 25 and 50 per cent over ten years. New Zealand has also secured Most Favoured Nation (MFN) status in wine and services, meaning any better terms India grants to the EU or other partners in future will automatically flow through to New Zealand exporters.
Dairy
While there is no sweeping liberalisation for bulk milk powder, cheese or butter, the benefits are more targeted. New Zealand’s industries can benefit from duty-free access for bulk infant formula and dairy ingredients destined for re-export.
The FTA also outlines a commitment for India to consult New Zealand if it opens dairy access to comparable economies in future.
Services and Education
Students from India will gain guaranteed post-study work rights in New Zealand (ranging from 2 to 4 years, depending on qualification level), making this a big win for international education.
Additionally, professional services firms will benefit from clearer rules about who can enter India, for how long, and under what conditions. And like wine, any improved access India grants to other countries' services sectors will automatically apply to New Zealand under the MFN clause.
Manufacturing
Tariffs will be phased out on most industrial products (i.e. iron, steel and scrap aluminium), much to the benefit of manufacturers exporting machinery, metals and industrial goods. It will also be easier for New Zealand firms to send sales staff, technicians and installers into India to support deals.
What This Means for NZ Businesses
For New Zealand companies planning to grow in India, the FTA lowers both the cost and the risk of doing business. The agreement still needs to pass through Parliament and the Foreign Affairs, Defence and Trade Committee before it takes effect, but there’s never been a better time to review one’s global strategies in the months ahead.
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