India, New Zealand sign FTA: 10 big wins for exporters
Trade minister Todd McClay with Indian counterpart Piyush Goyal at the signing of the FTA in New Delhi on April 27, 2026. (Supplied photo)
The free trade agreement is expected to come into force before the November 2026 elections.
India and New Zealand on Monday signed the long-negotiated free trade agreement in New Delhi, marking the conclusion of months of talks and bringing the deal a step closer to coming into force.
Trade minister Todd McClay signed the deal alongside India’s commerce and industry minister Piyush Goyal on April 27, following a final round of engagements that included a joint business summit.
McClay travelled with a delegation that included MPs from across parties and at least 30 business representatives, underscoring the government’s push to deepen economic ties with India.
The full text of the deal is expected to be presented in Parliament on April 28, and later the government will move the enabling legislation to give wheels to the deal.
Its path through Parliament has also been cleared, with Chris Hipkins confirming Labour’s support last week, providing the numbers needed for ratification after Winston Peters and New Zealand First signalled their opposition.
Big wins for New Zealand's exporters
1. Wine
Tariffs fall over a defined timeline.
Current: 150%
Post-FTA: Reduced by 66–83% over 10 years, to 25–50% final tariffs.
Tariffs begin to fall from entry into force, with full reductions phased in over a decade.
2. Apples
Tariff cuts with quota access.
Current: 50%
Post-FTA:Reduced to 25% for 32,500 tonnes from day one.
Expands to 45,000 tonnes over 6 years.
A combination of tariff reduction and volume access applies.
3. Kiwifruit
Immediate access plus partial tariff cuts.
Current: 33%
Post-FTA: 0% tariff for 6,250 tonnes from day one, rising to 15,000 tonnes over 6 years.
Outside quota: 50% reduction to 16.5% from day one.
4. Manuka honey
Phased reduction in high tariffs.
Current: 66%
Post-FTA: Reduced by 75% over 5 years, to about 16.5%.
Applies alongside quota-based access for premium segments.
5. Sheepmeat and wool
Tariffs removed immediately
Current: Sheepmeat: 33%; wool: 2.75%
Post-FTA: 0% from day one
Big wins for Indian exporters
1. Pharmaceuticals
Tariffs removed, processes streamlined.
Current: Up to 5% tariffs
Post-FTA: 0% tariffs across all lines
New Zealand imported US$1.38 billion worth of pharmaceuticals in 2024, with India accounting for around 5%
2. Textiles and clothing
Full tariff elimination.
Current: Up to 10% tariffs
Post-FTA: 0% tariffs across all textile lines
India already supplies around 16% of New Zealand’s made-up textile imports.
3. Machinery and vehicles
Tariffs removed across categories.
Current: Up to 10% tariffs
Post-FTA: 0% tariffs
New Zealand imports billions of dollars in machinery and vehicles annually, with India currently holding a small share.
4. Gems and jewellery
Tariffs eliminated
Current: Up to 5% tariffs
Post-FTA: 0% tariffs
New Zealand imported about US$287 million in this category in 2024, with India as a major supplier.
5. Processed foods, tea, coffee and spices
Tariffs reduced to zero.
Current: Up to 5% tariffs
Post-FTA: 0% tariffs
New Zealand imported around US$141 million in these categories in 2024.
