New Zealand exporters see major gains in India ahead of FTA
New Zealand Trade Minister Todd McClay announced on Monday that the country's exporters are experiencing significant gains in India, driven by rising demand for premium Kiwi products, even before the free trade agreement (FTA) comes into force. The New Zealand-India FTA, signed on April 27, 2026, in New Delhi, is currently before Parliament and expected to take effect later this year.
Tariff-free access from day one
Upon entry into force, 57 percent of New Zealand exports to India will be tariff-free immediately, with additional benefits phasing in over time. McClay highlighted a strong halo effect, with export volumes already increasing as businesses and customers recognize the quality of New Zealand offerings.
Apple exports surge 63 percent
Apples have been a standout performer. Since negotiations began, apple volumes have jumped 63 percent in the 2024 season, from 27,000 tonnes to 45,000 tonnes so far this year, with the season still ongoing. In just two years, India has risen from New Zealand's seventh-largest apple market to its fourth. Once the FTA takes effect, apple tariffs will halve to 25 percent from day one on an initial quota of 32,500 tonnes, increasing to 45,000 tonnes by year six. McClay called this a real financial boost for growers.
Kiwifruit tariff savings expected
Kiwifruit growers also stand to benefit significantly. The deal provides tariff-free access within a new quota starting at 6,250 tonnes and rising to 15,000 tonnes by year six. Outside the quota, tariffs will be halved from the start. The industry anticipates around $125 million in tariff savings over five years.
Other sectors see momentum
McClay noted that the engagement is flowing into other sectors. In June, Matariki Forests sent its first shipment of logs from Bluff to India since 2020, and chip and pulp exporters report strong momentum. New Zealand recently hosted Indian wool delegations seeking access to premium fibres and expertise in processing, technology, and advisory services.
Tourism and aviation bright spots
Tourism is another area of growth. Visitor arrivals from India are reaching new heights even before the FTA takes effect. April 2026 saw around 8,000 Indian visitors, significantly up from the same month in previous years. Air New Zealand has announced plans for a joint venture with Air India to launch the first direct services between the two countries.
Landmark trade agreement
The India–New Zealand Free Trade Agreement, signed on April 27, 2026, aims to boost exports, support MSMEs, enhance investment flows, facilitate skills mobility, and broaden economic cooperation. McClay emphasized that the deal is already generating positive momentum across multiple sectors.
