When one thinks of New Zealand, the mind goes to their abundant dairy products, succulent lamb chops and delicious Sauvignon Blancs and Pinot Noirs. Now the New Zealand Government has concluded negotiations on this Free Trade Agreement (FTA) with India, with the Agreement expected to be signed in the first half of 2026, which will help more chops and wines to enter India.

Despite their strong push, the government of India has not agreed to discuss the dairy products keeping in view the local dairy farmers’ needs, just like Australians were kept at bay. Under the FTA, India’s import duties on wine will come down from the present 150% to either 25 or 50% (depending on the value of the wine, being over or less than $15 a bottle) over 10 years.

This duty is the same for Australia and in fact, the rate of duty is expected to be the same for almost all the countries with whom India has signed the Agreement or is likely to do so in the coming months- most such Agreements have a clause that if any country gets a special tax treatment the same will be passed on to them also.

These concessions are identical to what India signed with Australia – in a bilateral trade pact signed in November 2021 and implemented in December 2022. According to New Zealand’s trade ministry, tariffs on New Zealand wine will be reduced by 66-83% over ten years from the date the treaty comes into effect, with further reductions in future if other FTA partners get a reduction.

As expected, ‘New Zealand Winegrowers’ has welcomed the Treaty. “This FTA is a significant step toward unlocking one of the world’s largest and fastest‑growing consumer markets,” says Philip Gregan, CEO of New Zealand Winegrowers. “The phased reduction of India’s wine tariffs and the inclusion of a Most Favoured Nations (MFN) is a signal that the Indian market is opening up; this will encourage wineries to build their involvement in the India market over the coming decade,” he reportedly added.

Wine will receive MFN treatment- it means that any future FTA that India concludes with another country on more favourable wine tariffs, will automatically be extended to New Zealand wines.

‘New Zealand Winegrowers’ views the FTA as positive news for the industry. Wineries will be able to plan with confidence around a clear, decade‑long tariff reduction direction. It will also be good for Indian consumers who love their wines but taxes make them very expensive- especially the Sauvignon Blanc- the favourite white wine for most consumers (wine snobs excluded) and Pinot Noir which is ranked at the top and closest to Burgundy of which the prices have reached such astronomical heights that even Burgundians cannot afford to drink it any more.

Current exports to India are very modest, under NZ$300,000 (FOB) in 2025 due to high tariffs. Many importers entered imports but gave up due to the high landing costs thanks to the high taxes. Improved market access under the FTA is expected to make India increasingly attractive to New Zealand wine exporters over the coming years.

New Zealand is renowned for its premium, distinctive and especially sustainable wine. This reputation gives our producers a compelling point of difference as they engage India’s affluent consumers.

Indian wine exports and scores of other products will find a small additional market for their exports at zero duties. There are also liberal visa features that would make Indian wine students study in New Zealand for advanced degrees with a possibility of working for 4 years after the completion,

Also Read: Indo- Australian FTA operational Today to make Aussie Wines Cheaper

Subhash Arora