NEWS
INDIA COULD CUT NZ WINE TARIFFS TO 25% IN FREE TRADE DEAL
By Staff Reporter
5-1-2026
Source: Doubao AI
India could reduce its wine tariffs on New Zealand wines to 25 percent over the next decade, after the two countries signed a landmark Free Trade Agreement (FTA).
According to the terms of the agreement, India has committed to phase down wine import tariffs from 150 percent to either 25 percent or 50 percent over a 10-year period, depending on the value of the wine.
“This once-in-a-generation agreement creates opportunities New Zealand exporters have never had in India,” said New Zealand’s Trade and Investment Minister Todd McClay.
“This deal is in New Zealand’s best interest and will deliver thousands of jobs and billions in additional exports.”
Under the agreement, tariffs will be eliminated or reduced on 95 percent of New Zealand’s exports to India. More than half of New Zealand’s exports will become tariff-free immediately, rising to over 80 percent once the agreement is fully phased in.
In return, India will receive zero-duty market access for all its exports to New Zealand.
Wine will not benefit from immediate tariff elimination under the FTA, but will see substantial reductions.
“Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries,” Indian Prime Minister Narendra Modi said.
According to export data published by New Zealand Winegrowers, New Zealand shipped just 22,787 litres of wine to India in the first 10 months of 2025, worth NZD294,329 (USD169,559).
Over the same period, New Zealand exported approximately 270 million litres of wine globally, worth around NZD1.95 billion, leaving India well below 0.1 percent of its total export volume and value.
“Presently our exports to India are small, but there is a lot of interest being expressed from our members,” says Charlotte Read, General Manager Brand at New Zealand Winegrowers.
“The agreement is positive news for the New Zealand wine industry as our member wineries will be able to plan with certainty for reduced tariffs over the next decade.”
India has earlier reduced its 150 percent tariffs on Australian wine to 75 percent under a FTA and is currently negotiating with the European Union over potential tariff cuts on wine as part of ongoing trade talks.
(the writer can be contacted at: info@thewinechronicle.com)
ALL RIGHTS RESERVED
**IF YOU THINK THE WINE CHRONICLE IS WORTH SUPPORTING, PLEASE MAKE A DONATION TO HELP US IMPROVE AND CONTINUE OUR WORK**
TRENDING│ FOCUS│ MISSION│ ABOUT US│ CONTACT
| 