Agreement Overview and Timeline
India and New Zealand are nearing the final stages of a Free Trade Agreement (FTA), expected to be signed in H1 2026. A key highlight of this deal is the gradual reduction in tariffs on imported wine, which could significantly reshape the market.

Tariff Reduction and Price Impact
Currently, New Zealand wines face a steep 150% import duty in India. Under the FTA, this tariff will be reduced to around 25–50% over 10 years. This phased reduction is expected to make premium imported wines more affordable, giving consumers greater choice at lower prices.

Opportunities for Indian Exporters
The agreement will allow Indian wines and spirits to enter New Zealand duty-free, opening up a new market. At present, India’s exports are minimal (around NZ$300,000 in 2025), but the removal of duties is likely to boost exports significantly.

MFN Advantage for New Zealand
New Zealand will receive Most Favoured Nation (MFN) treatment, meaning any better trade terms India offers to other countries in the future will automatically apply to New Zealand. This enhances long-term trade attractiveness and stability.

• Broader Market Impact
• Increased availability of premium imported wines in India
• Greater competition leading to improved quality and variety
• New export opportunities for Indian producers
• Benefits for the hospitality sector through better pricing and options

Potential Challenges
Domestic wine producers may face pressure due to increased imports. Policymakers may need to balance liberalization with measures that support l