Trade Minister, Todd McClay says New Zealand exporters are seeing major gains in India as demand grows for high-quality Kiwi products ahead of the start of a Free Trade Agreement between the nations.
“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,” said Mr McClay.
“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% of New Zealand exports to India will be tariff-free from day one, with more benefits phasing in over time, the Minister said.
Since negotiations began, New Zealand apple volumes have gone from from 27,000 tonnes in the 2024 season to 45,000 tonnes so far this year.
“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.
He said 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.
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 is another bright spot, with visitor arrivals from India reaching new heights. April 2026 saw around 8,000 Indian visitors, well up on the same month in previous years.
Air New Zealand has also announced it is working on joint venture plans with Air India that would allow it to start the first direct services between our countries.
The Minister said 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,” he said.
“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 said.
