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In a significant development, India has agreed to reduce import tariffs on wines from New Zealand under the newly concluded India–New Zealand Free Trade Agreement (FTA). The current duty of 150 percent will be progressively lowered to either 25 percent or 50 percent, depending on the value of the wine, over a period of 10 years, along with a Most Favoured Nation (MFN) commitment.
India and New Zealand formally concluded the FTA on Monday after several rounds of negotiations. The agreement was jointly announced following a telephone conversation between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, according to an official statement.
Describing the pact as historic, ambitious and mutually beneficial, the two leaders said the FTA would act as a catalyst for expanding trade, investment, innovation and shared opportunities. Negotiations for the agreement were initiated during Prime Minister Luxon’s visit to India in March 2025 and were completed in a record nine months, underscoring strong political commitment from both sides.
The FTA is expected to significantly deepen bilateral economic engagement by improving market access, promoting investment flows and strengthening strategic cooperation. Under the agreement, tariffs will be eliminated or reduced on 95 percent of New Zealand’s exports to India, with more than half of the products becoming duty-free from the first day of implementation. The pact is expected to help New Zealand exporters tap into India’s rapidly expanding middle class and an economy projected to be worth NZ$12 trillion (US$7 trillion) by 2030.
Beyond trade in goods, the agreement places strong emphasis on employment generation, skill mobility, innovation-led growth and enhanced participation of micro, small and medium enterprises (MSMEs). It is expected to create new opportunities for farmers, entrepreneurs, innovators, students and youth in both countries, while supporting agricultural productivity and trade-led growth.
