The India-New Zealand free trade agreement entered into force on October 20, New Zealand's Ministry of Foreign Affairs and Trade said1. Indian exporters can now ship to New Zealand duty free. Indian importers pay less duty on a short list of New Zealand goods, though apples, kiwifruit and Manuka honey face volume caps, and dairy, sugar and edible oils are excluded outright3, 5.
New Zealand removed tariffs on all Indian tariff lines from day one. "100% of tariff lines are going to become zero from tomorrow onwards," Sampath Kumar, Additional Director General of Foreign Trade, said on October 19, the day before the deal took effect2.
What Indian exporters get
Duties of up to 10% on textiles, clothing, leather and footwear ended on October 20, Kumar said. Tariffs of up to 5% on pharmaceuticals, agricultural and marine products, plastics, chemicals and electrical goods also went2.
BusinessLine listed textiles, garments, leather, footwear, machinery and auto components as gainers3. The gain may be smaller than it looks: Ajay Srivastava of the Global Trade Research Initiative found that New Zealand already charged no duty on 58.3% of its tariff lines3. Food-safety standards, certification costs and freight still restrain Indian shipments3.
Bilateral merchandise trade was USD 1.3 billion in 2024-25, with Indian exports of USD 711 million, the Commerce Ministry said2. Mint reported it slipped about 11% to USD 1.15 billion in 2025-26, with exports of USD 566.51 million and imports of USD 589.1 million6. The two sides want to double goods and services trade to NZ$7 billion, about ₹35,000 crore, by 20303.
What India opened for New Zealand
India is giving concessions on about 70% of its tariff lines, covering nearly 95% of New Zealand's exports3. New Zealand says 57% of its exports to India get full tariff elimination immediately, rising to 82% over time, with sharp cuts on a further 13%7.
Sheep meat, fresh, chilled or frozen, enters with zero basic customs duty and zero farm and health cess5. Wine gets price-based cuts. Bottles below USD 5 per 750 ml stay at 150%. Bottles from USD 5 to below USD 15 fall to 100% now and 50% by the tenth year. Bottles at USD 15 or more fall from 150% to 75% now and 25% by the tenth year3.
India kept dairy, sugar and edible oils out of the deal3. Onions, chana, peas, corn and almonds are also excluded, along with artificial honey, precious metals, jewellery, copper and aluminium products6.
The four quota items
A tariff rate quota lets a set volume in at a lower duty; anything above pays the normal rate4.
For apples, India charges 50% duty today. Inside the quota the rate is 25%, provided the CIF value is at least USD 1.25 per kg4. No quota applies in the first year. It then runs at 35,000 tonnes in the second year and rises to 45,000 tonnes a year from the sixth4, 8. The window runs from April 1 to August 314. So apple imports keep paying 50% until the first window opens in April 20274, 9. BusinessLine's October 20 report gave a different first figure, 32,500 tonnes3.
Kiwifruit also has no quota in year one. The quota starts at 8,000 tonnes in the second year and rises to 15,000 tonnes from the sixth4. Imports are duty free if CIF is at least USD 1.80 per kg, inside a window of April 1 to October 154. Outside the quota, kiwifruit valued at USD 2.50 per kg or more pays 15% basic customs duty5.
Manuka honey gets 40 tonnes in the first year and 200 tonnes a year from the second, with certification from New Zealand's Ministry for Primary Industries and a specified CIF value4, 9.
Albumins, a milk protein product, start at 200 tonnes and reach 3,000 tonnes a year from the fifth, at 11% duty4, 8.
What importers should check
First, the exact tariff entry. The Finance Ministry's October 16 notification sets revised basic customs duty and cess for listed lines only. Relief is line by line, not across the board5.
Second, origin. Importers must show proof of New Zealand origin to claim the rate5. The pact allows digital certification and self-certification of origin for eligible status holders. It also sets clearance targets of 48 hours for cargo and 24 hours for express and perishable goods6.
Third, the quota paperwork. New Zealand issues export certificates to its exporters naming the Indian importer. A quota authorisation is valid only for the year it was issued and only inside the window, and unused quantity lapses4.