NEWS
INDIA-NEW ZEALAND FREE TRADE DEAL SET TO UNLOCK WINE TRADE
By Staff Reporter
30-4-2026
Source: Doubao
The free trade agreement (FTA) between India and New Zealand signed on Monday is set to reshape bilateral wine trade, dismantling long-standing tariff barriers that have stifled New Zealand wine access to one of Asia’s fastest-growing premium beverage markets.
The landmark deal outlines a 10-year phase-down of India’s steep 150 percent wine import tariff.
Under the FTA, tariffs on premium wines valued at USD 15 and above per bottle will be slashed to 25 percent, while mid-range wines priced between USD 5 and USD 15 will see tariffs drop to 50 percent.
The agreement also includes a most-favored-nation clause, ensuring New Zealand wineries benefit from any preferential terms India grants to future trade partners.
Prior to the FTA, exorbitant duties and additional state-level levies capped New Zealand wine exports to India at a mere 22,787 litres in the first 10 months of 2025, valued at USD 169,559 – representing less than 0.1 percent of the country’s total global wine exports.
Trade analysts attribute the minimal volume entirely to prohibitive tariff costs, which priced New Zealand wines out of India’s mainstream consumer market.
India’s wine market, valued at roughly USD 1.5 billion, boasts an annual growth rate of 8 percent to 10 percent, fuelled by an expanding urban middle class and surging demand for premium international wines in luxury hospitality and retail channels.
Despite strong market potential, ultra-high import duties have long limited foreign wine penetration, keeping per-capita wine consumption among the lowest worldwide.
New Zealand’s Minister for Trade and Investment Todd McClay stated that the FTA provides long-awaited certainty for Kiwi wineries, calling India a “high-potential market poised for transformative wine trade growth.”
Representatives from New Zealand Winegrowers noted the country’s reputation for cool-climate, sustainable wines – particularly Sauvignon Blanc and Pinot Noir – aligns directly with India’s premium beverage consumption trends.
Beyond tariff cuts, the agreement establishes a dedicated Wine Working Group to address non-tariff barriers, including streamlined labelling, certification and winemaking standard compliance, further facilitating bilateral trade flows.
As part of the broader FTA, 95 percent of New Zealand’s total exports to India will receive tariff relief, with 57 percent gaining immediate duty-free access.
In return, Indian exports will secure zero-duty access to the New Zealand market.
Industry projections forecast gradual but sustained growth in New Zealand wine shipments to India, with the market on track to become a top-15 export destination for Kiwi wineries by the time the tariff phase-in is fully completed in 2036.
(the writer can be contacted at: info@thewinechronicle.com)
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