India FTA Cuts NZ Wine Tariffs From 150% Over 10 Years

The agreement gives New Zealand wine brands greater confidence to build their presence in India, with tariffs reducing progressively over the next decade. Depending on the wine’s value, tariffs on eligible New Zealand wine will reduce over ten years from 150% to either 50% or 25%.

Most Favoured Nation Commitment and Wine Annex

The FTA includes a Most Favoured Nation commitment for wine. If India agrees more favourable tariffs for wine in a future FTA with another country, eligible New Zealand wine will automatically receive the same tariff treatment.

It also includes a dedicated Annex on Trade in Wine, Whisky and Other Distilled Spirits. The annex aims to facilitate trade through greater transparency, regulatory cooperation and clearer treatment of wine-specific issues, and it establishes a working group on topics such as technical matters, labelling and certification

A Market with Room to Grow

New Zealand wine exports to India have historically been modest, but they grew 48% in the last year to just under NZ$438,000.

India’s wine market is largely concentrated in three cities: Mumbai, Delhi and Bengaluru. Together, they account for half of the country’s wine consumption and are home to around 70 million people. NZW says this is a market 13 times the size of New Zealand and comparable to the United Kingdom.

Red wine accounts for a significant share of imported wine in India, creating opportunities for a range of New Zealand styles alongside Sauvignon Blanc. In the year to March 2026, Maharashtra, whose capital is Mumbai, sold a record 13 million litres, or around 1.4 million cases. Imports grew 14% by volume in 2025.

NZW's Response

“We thank Ministers and officials for their work to secure improved access to a market with considerable long-term potential,” said NZW Chief Executive Anishka Jelicich.

“By working to bring the FTA into force quickly, the Government has ensured that New Zealand will also benefit from the Most Favoured Nation preferential tariff rates that have been negotiated under the EU India FTA. Those tariff reductions are more substantial and would not have been available to us if the EU deal had entered into force first.

“India remains largely untapped for New Zealand wine, so our focus is on helping our members assess the opportunity through practical market intelligence and insights, connections with key stakeholders and opportunities in-market to build their brands.”

Long-Term Commitment Needed

NZW recently hosted India’s only Master of Wine, Sonal C Holland, as keynote speaker at its annual Wine Business Forum in Wellington. Her message was that the FTA removes a significant barrier, but long-term success in India will require commitment, patience and strong local relationships.

ProWine Mumbai

NZW will work with New Zealand Trade and Enterprise (NZTE) next month at ProWine Mumbai, where a 20-strong contingent of businesses will showcase New Zealand wine to the Indian trade.

“These types of events are incredibly valuable for our members, helping them to build distributor relationships and a pipeline in a growing premium segment,” Jelicich said.