NZ-India free trade agreement takes effect, with 57% of exports tariff free

From today, 57% of New Zealand’s current exports to India become tariff free, rising to 82% as the agreement is implemented. Tariffs will also be reduced on a further 13% of current exports.

More than 95% of forestry exports will enter India tariff free from day one, along with sheep meat, wool and coal. The agreement also includes commitments to improve customs processes and reduce barriers to trade.

Two-way trade between the two countries was worth NZ$3.95 billion in the year ended December 2025. Last year, Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi set an aspirational goal of growing trade to NZ$7 billion by 2030.

India New Zealand Business Council (INZBC) Chair Bharat Chawla described the agreement as an important milestone that begins the next phase of the relationship.

“The agreement improves the conditions for businesses to operate but the real value will come from the commercial partnerships, investment and trade that grow from here,” Chawla said.

INZBC Chief Executive Sunil Kaushal said the agreement creates opportunities across sectors, but that success would depend on businesses acting on them.

“Market access is important but long-term success in India comes from understanding the market, building trusted relationships and committing for the long term,” Kaushal said.

He said India was one of the world’s fastest-growing major economies, and that New Zealand strengths in food and beverage, technology, education, advanced manufacturing and professional services were highly valued there.

Kaushal said the council’s focus would now move from making the case for an agreement to helping businesses turn it into commercial outcomes.

“We have spent many years building momentum in the relationship. The agreement gives businesses access and the next stage is about implementation,” he said.