NEWS
NEW ZEALAND WINE EXPORTS TO INDIA SET TO GROW UNDER FREE TRADE DEAL
By Staff Reporter
7-10-2026
Source: AI photo
New Zealand wine producers are poised to gain improved access to India’s fast-growing premium beverage market under the New Zealand‑India Free Trade Agreement, which enters into force on 20 October 2026.
The deal will phase down India’s steep wine import duty of 150 percent over a decade.
On launch day, tariffs will drop to 75 percent for bottles valued above USD15 per 750ml and 100 percent for wines priced between USD5 and USD15. Lower‑priced wine under USD5 per bottle will retain the original 150 percent tariff.
Rates will fall annually, eventually hitting 25 percent for premium wine and 50 percent for mid‑tier wine after 10 years.
A key clause grants New Zealand most‑favoured nation status. If India offers more generous wine tariff terms to other trading partners such as the European Union, those improved terms will automatically apply to New Zealand wine shipments.
India’s rising middle class has driven steady demand for imported wine, though high customs duties and varying state‑level alcohol taxes remain major barriers for foreign suppliers.
New Zealand wine industry bodies say the gradual tariff reduction will make Marlborough Sauvignon Blanc, Pinot Noir and other premium Kiwi wines more competitive, opening long‑term growth opportunities in a market of more than 1.4 billion consumers.
Wine exporters cautioned that state excise rules and retail distribution hurdles will still weigh on market penetration, even after the federal import tariff cuts take effect.
The free trade agreement covers 95 percent of New Zealand’s goods exports to India, with wine among the priority agricultural and beverage sectors benefiting from staged duty reductions.
(the writer can be contacted at: info@thewinechronicle.com)
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