New Zealand and India signed the Free Trade Agreement (FTA) on 27 April 2026, establishing a new framework for bilateral trade and economic cooperation. New Zealand Parliament passed the legislation required to implement the Agreement on 16 September 2026. Both countries formally completed ratification procedures and exchanged the required notifications on 21 September 2026. The Agreement is scheduled to enter into force on 20 October 2026.
The FTA delivers different outcomes by product. The examples below illustrate selected tariff reductions and quota access; actual treatment depends on tariff classification, quota availability, Rules of Origin and applicable import requirements.
Tariffs eliminated from day one of the Agreement.
Zero-tariff access within an initial 6,250-tonne quota, rising to 15,000 tonnes over six years. Outside-quota tariff is reduced by 50% to 16.5%.
Reduced 25% tariff within an initial 32,500-tonne quota, rising to 45,000 tonnes over six years.
Tariffs reduced from 66% to about 16.5% over five years. Product-category conditions apply.
Tariffs, currently as high as 150%, progressively fall to 25–50% over 10 years.
These are selected examples, not a complete tariff schedule. Businesses should verify the exact HS code, tariff staging, quota rules and origin requirements against the Agreement and current official guidance.
Source: Awaaz, “Done deal: India, NZ FTA to take effect October 20 as ratification is formally complete” (21 September 2026); cross-check all tariff specifics against MFAT’s official key outcomes and the Agreement tariff schedules. Read the Awaaz report
Creating New Opportunities Across India and New Zealand
The Agreement provides preferential tariff treatment for qualifying goods. The tariff outcome varies by product and may involve immediate elimination, staged reductions, quotas or exclusions. Eligibility depends on the relevant tariff schedule, Rules of Origin and customs requirements.
The Agreement establishes commitments and a framework for greater services trade and commercial engagement, in areas including professional services, technology, education and financial services, subject to specific commitments and conditions.
The FTA supports closer economic engagement and can provide a framework for businesses considering investment, partnerships or expansion across the two markets. Commercial, regulatory, tax and legal due diligence remains essential.
The Agreement includes customs cooperation, origin procedures and trade-facilitation commitments intended to improve predictability, transparency and efficiency for traders.
Preferential market access does not itself create customers or commercial relationships. Businesses still need suitable buyers, distributors, suppliers, investors, partners and trusted local contacts. INZCCI can help facilitate relevant connections.
The FTA creates a framework within which business relationships can develop. INZCCI can help businesses navigate that pathway.
What Changes for Different Products?
The benefits of the New Zealand–India FTA vary by product. Some products will receive duty-free access from entry into force, while others will benefit from phased reductions.
These figures do not mean every product becomes duty-free immediately.
More than 95% of New Zealand forestry and wood exports will be able to enter India tariff-free immediately from entry into force. Tariffs on almost all existing trade are scheduled to be phased out over seven years. Product classification and origin requirements still apply.
Tariffs on wool are eliminated immediately from entry into force. Exporters must still confirm the product's tariff classification and satisfy the applicable Rules of Origin and customs requirements.
Tariffs on sheep meat are removed immediately from entry into force, subject to the Agreement's product coverage and applicable origin and import requirements.
Tariffs on key New Zealand fish and seafood exports are scheduled to be phased out over seven years. The treatment depends on the product and its tariff classification.
The Agreement provides new quota-based market access for apples and kiwifruit, with volumes starting above average recent trade and increasing over time. Kiwifruit also receives a 50% tariff reduction outside the quota. Exporters should check the applicable quota administration, product requirements and tariff schedule.
Tariffs on these horticultural products are scheduled to be eliminated over ten years. The staged timing and product-specific conditions should be checked in the relevant tariff commitments.
The Agreement reduces tariffs on qualifying mānuka honey by 75% over five years. Specific certification, price and quota conditions apply to different product categories, so exporters should verify the exact tariff line and eligibility requirements.
India's tariffs on New Zealand wine are scheduled to be reduced by 66–83% over ten years. The Agreement also includes a commitment to extend certain improved treatment offered to future FTA partners. The applicable wine category and staging should be checked.
Dairy remains a sensitive area and does not receive broad, across-the-board tariff elimination. The Agreement provides phased tariff elimination for bulk infant formula and certain dairy-based preparations and peptones, and a tariff-rate quota for albumins. A separate fast-track arrangement covers qualifying New Zealand inputs used in manufacturing goods for export from India.
For albumins, a milk-protein product, the Agreement establishes a tariff-rate quota (TRQ). The current tariff is 22%, with the in-quota tariff reduced to 11%.
| Year | Quota Volume | In-Quota Tariff |
|---|---|---|
| Year 1 | 1,000 tonnes | 11% |
| Year 2 | 1,500 tonnes | 11% |
| Year 3 | 2,000 tonnes | 11% |
| Year 4 | 2,500 tonnes | 11% |
| Year 5 onward | 3,000 tonnes | 11% |
The 3,000-tonne quota is not duty-free access. Quantities outside the quota remain subject to the applicable most-favoured-nation (MFN) tariff. Importers should confirm quota availability, administration and applicable rates before shipment.
The FTA provides for a dedicated fast-track arrangement to facilitate duty-free imports into India of qualifying New Zealand inputs, including dairy ingredients, for use in manufacturing goods intended for export. This is a separate mechanism from the ordinary tariff treatment applying to dairy products sold in India’s domestic market — it is not blanket zero-tariff access for dairy inputs. Preferential treatment is conditional on the arrangement’s eligibility criteria, permitted inputs, manufacturing and export requirements, and required documentation. Businesses should confirm the detailed operating procedures with the relevant Indian authorities and customs specialists before relying on the arrangement.
The FTA is a two-way agreement. New Zealand has committed to eliminate tariffs from entry into force on Indian goods covered by its tariff commitments. India's Ministry of Commerce and Industry describes this as zero-duty market access across New Zealand's tariff lines, while the Agreement's product coverage, origin rules and other requirements continue to apply. Improved tariff settings may create opportunities for Indian exporters in sectors such as textiles, pharmaceuticals, engineering goods and other manufactured products. This does not mean every product or shipment is automatically duty-free: exporters and importers must check classification, origin, exclusions and New Zealand's customs, biosecurity, product-safety, labelling and other regulatory requirements.
More Than Tariff Reductions
Improved market access for qualifying products, with product-specific tariff elimination, reductions or other arrangements.
A framework for greater cross-border engagement in covered professional, technology, education, financial and other services.
Opportunities to assess establishing, expanding or partnering across India and New Zealand, subject to independent due diligence.
Potential connections with distributors, suppliers, buyers, investors, joint-venture partners, strategic partners and institutions.
The FTA creates the framework. Businesses create the opportunity. INZCCI helps make the connections.
How Businesses Actually Use the FTA
Determine the correct Harmonised System (HS) tariff classification. Classification is the starting point for identifying the applicable tariff commitment.
Use the relevant India or New Zealand tariff schedule to confirm the rate, staging, quota, exclusion or other product-specific treatment.
Determine whether the product qualifies as originating under the Agreement. Rules may consider wholly obtained status, tariff-classification changes, qualifying value content, specified processing or bilateral cumulation where applicable.
Use the proof-of-origin method permitted by the Agreement and implementation rules — certificates of origin or self-declaration by approved exporters. Keep the required supporting records.
The importer must follow the destination country's customs process and provide the required information to claim preferential treatment.
For example, a New Zealand exporter considering an India-bound product should first confirm its HS code, then check India’s tariff schedule and staging. The exporter must establish that the goods meet the product-specific Rules of Origin and provide the required proof. The Indian importer must then make the preference claim in accordance with Indian customs procedures. A shipment’s country of dispatch alone does not establish origin.
Where the Agreement Creates Commercial Opportunities
The FTA may be relevant across INZCCI’s 18 priority sectors. The nature and extent of the opportunity will depend on the product or service, the relevant commitment and market conditions.
The opportunity is not just about tariffs. Businesses may also explore supply chains, services, investment, technology and expertise, and cross-border business partnerships.
Official Information for Businesses
For authoritative information, consult the official Agreement text, tariff schedules and implementation guidance. These sources should be used to verify product-specific treatment before a business makes a preferential tariff claim.
INZCCI can help businesses understand where an opportunity may sit, identify the relevant market and connect with businesses, institutions and specialists. INZCCI does not provide legal, customs, tax or investment advice and does not guarantee commercial outcomes.
No. The Agreement was signed on 27 April 2026, and New Zealand's implementing legislation passed on 16 September 2026. The New Zealand Treaties Register currently records the Agreement as not in force. It will enter into force after both countries complete their required domestic procedures and exchange written notifications, 30 days after that exchange unless another date is agreed. Check the official register for the latest status.
No. Preferential tariff treatment is available only once the Agreement has entered into force. After commencement, eligibility will depend on the product's tariff commitment, Rules of Origin, proof of origin and customs requirements.
No. The Agreement provides different outcomes across products. Some tariffs are eliminated immediately, others are phased out, some receive reductions or quota-based treatment, and some products are excluded or subject to specific conditions. Check the tariff schedule for the product's HS code.
MFAT's headline figure means 95% of New Zealand's current exports to India are expected to receive tariff elimination or reductions over time. Within that total, 57% receives full tariff elimination from entry into force, rising to 82% when fully implemented, with a further 13% receiving sharp tariff reductions. These are aggregate figures, not a guarantee that any individual product becomes duty-free immediately.
Identify the correct HS tariff classification, then consult the relevant India or New Zealand tariff schedule published with the Agreement. Check staging, quotas, exclusions and Rules of Origin. If classification or eligibility is unclear, consult a customs broker or the relevant customs authority.
Rules of Origin determine whether goods qualify as originating in New Zealand or India for preferential treatment. Depending on the product, the rule may require wholly obtained status, a tariff-classification change, qualifying value content or specified processing. Simply shipping goods from a country does not make them originating there.
You must use the proof-of-origin method allowed under the Agreement and applicable implementation rules. The Agreement provides for certificates of origin and self-declaration by approved exporters. Confirm the applicable process and record-keeping requirements before claiming preference.
The Agreement provides for self-declaration by approved exporters from entry into force. It also provides for a review after five years that may consider extending self-declaration more broadly. Self-declaration is not automatically available to every exporter; applicable approval and record-keeping requirements must be met.
Imported materials do not automatically disqualify a product. However, the finished product must meet its specific Rules of Origin, which may include a tariff-classification change, value-content threshold or processing requirement. Check the rule and retain supporting records.
A tariff-rate quota allows a specified quantity of a product to enter at a preferential tariff rate during a defined period. Once the quota is filled, a different tariff may apply. A quota is not unlimited duty-free access. Check the volume, in-quota rate, allocation and out-of-quota treatment.
Potentially. An FTA tariff preference concerns customs duty and does not necessarily remove GST, excise, fees, levies or other charges. Confirm the full landed-cost treatment with the relevant customs or tax authority.
Yes. The FTA does not replace product-specific import rules or approvals. Biosecurity, food safety, product standards, labelling, licensing and other requirements may continue to apply. Check the destination market's requirements before shipping.
Yes. The Agreement includes services commitments and a framework for greater commercial engagement. MFAT identifies opportunities in areas including fintech, tertiary and private education, professional services and environmental services. The specific commitment depends on the service and applicable conditions.
The Agreement provides for tariff elimination from entry into force on Indian goods covered by New Zealand's tariff commitments. Potential opportunities include textiles, pharmaceuticals, engineering goods and other manufactured products. The actual treatment depends on product classification, origin and coverage. New Zealand import, biosecurity and regulatory requirements continue to apply.
The FTA supports closer bilateral economic engagement and may help businesses assess opportunities to establish, expand or partner across the two markets. It does not guarantee investment returns, approvals or commercial success. Investors should undertake independent commercial, legal, tax and regulatory due diligence.
Dairy does not receive broad, across-the-board tariff elimination. The Agreement provides phased tariff elimination for bulk infant formula and certain dairy-based preparations and peptones, and a reduced in-quota tariff for albumins. A separate fast-track arrangement covers qualifying New Zealand inputs used in Indian export manufacturing. Each pathway has distinct conditions.
Businesses can identify target markets, confirm HS classifications, review tariff commitments and Rules of Origin, and engage potential importers, distributors or manufacturing partners now. Preferential tariff claims must wait until the Agreement is in force and all applicable requirements are met.
INZCCI can help identify relevant sectors and facilitate connections with businesses, institutions and specialists across India and New Zealand. It does not guarantee a commercial outcome or replace professional advice. Use the enquiry form to describe your product or service, target market and the type of connection you are seeking.
The Agreement provides for a dedicated arrangement to facilitate duty-free imports into India of qualifying New Zealand inputs, including dairy ingredients, for use in manufacturing goods intended for export. It is distinct from ordinary dairy imports for domestic-market sale. Eligibility, permitted inputs, manufacturing and export conditions, and documentation must be confirmed under the Agreement and implementation arrangements.
No. It is not blanket zero-tariff access. The arrangement is limited to qualifying inputs used for eligible export manufacturing and is subject to its conditions. Dairy products imported for other purposes must be assessed under the ordinary product-specific tariff commitments and requirements.
Turning Market Access Into a Business Opportunity
Two Markets. One Business Journey: New Zealand → India | India → New Zealand | India ↔ New Zealand
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The FTA creates the framework. Businesses create the opportunity. INZCCI helps make the connections.