India offers duty-free access to over half of New Zealand exports under new FTA

India will allow duty-free entry to 54.11 per cent of New Zealand’s exports from the first day of implementing the India–New Zealand Free Trade Agreement (FTA), a move expected to lower prices of several imported goods for Indian consumers.

The products eligible for zero duty from day one include sheep meat, wool, coal, and a range of forestry and wood products. According to the Ministry of Commerce and Industry, duty-free coverage for New Zealand exports will expand to 79 per cent over a 10-year period, based on 2024 trade data.

The two countries announced the conclusion of FTA negotiations on Monday. The agreement is expected to come into force around seven to eight months after formal signing.

Under the pact, India will also progressively eliminate import duties on several seafood items, such as mussels and salmon, over seven years. Import duties on selected iron, steel and scrap aluminium products will be phased out over 10 years or less. These items are key industrial inputs, and the concessions were granted to support cost-efficient manufacturing in India.

Sensitive agricultural products—including apples, kiwifruit, manuka honey and albumins (including milk albumin)—will be covered under tariff-rate quotas (TRQs), along with minimum import prices (MIPs) and safeguard provisions.

New Zealand currently exports about 23,602 metric tonnes (MT) of apples to India at a 50 per cent import duty. Under the FTA, India will permit imports of 32,500 MT in the first year at a reduced duty, with the quota rising to 45,000 MT by the sixth year at a 25 per cent duty and an MIP of USD 1.25 per kg. Imports beyond this quota will continue to attract a 50 per cent duty. The ministry noted that these quotas are set below current import levels.

For kiwifruit, where India presently levies a 33 per cent duty and imports 5,840 MT annually from New Zealand, duty concessions will apply to 6,250 MT in the first year. The quota will expand to 15,000 MT by the sixth year, with zero duty and an MIP of USD 1.80 per kg—around 2.6 times current import volumes.

Additionally, import duties on avocados and persimmons will be phased out over 10 years, aligning with provisions included in India’s FTA with Australia.

The government said the calibrated concessions aim to balance consumer benefits, industrial competitiveness and protection of sensitive domestic agricultural sectors.