New Zealand exporters have seen major gains in India as demand for high-quality Kiwi products grows, even though the Free Trade Agreement hasn’t yet come into force.
Trade Minister Todd McClay said that the New Zealand-India FTA has been signed and is now before Parliament. He expected it to enter into force later this year, but has already seen 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,” said McClay.
On entry into force, 57 percent 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 percent 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 the seventh-largest apple market to the fourth.
McClay added that once the FTA takes effect, apple tariffs will halve to 25 percent from day one on an initial quota of 32,500 tonnes, rising to 45,000 tonnes by year six, boosting financial growth for growers.
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 to save around NZD 125 million in tariffs over five years.
Forestry and wool sectors are benefiting
The engagement has also flowed through to other sectors. In June, Matariki Forests sent its first shipment of logs from Bluff to India since 2020, and chip and pulp exporters have reported strong momentum.
New Zealand recently hosted Indian wool delegations seeking access to 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. In April 2026, around 8,000 Indian visitors arrived, 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 the two countries.
Securing better access to 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. Under the Most Favoured Nation clause in the FTA, New Zealand automatically adopted those better terms once the agreement entered into 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,” said McClay.
“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.”
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