New Zealand Exporters Gain Early Edge in India Before FTA Begins

Apple exports have increased by 63 per cent compared with the 2024 season, rising from 27,000 tonnes to 45,000 tonnes so far this year, while the export season is continuing.

New Zealand businesses are already seeing stronger demand in India even before the Free Trade Agreement (FTA) officially comes into force, with rising exports across agriculture, forestry, tourism and other sectors signalling growing confidence between the two countries.

New Zealand's apple industry has emerged as one of the biggest early beneficiaries of the trade agreement, with export volumes to India climbing sharply while the deal is still awaiting ratification. Trade Minister Todd McClay said the agreement has already created strong market confidence, encouraging importers and buyers in India to secure more New Zealand produce well ahead of the official implementation.

Apple exports have increased by 63 per cent compared with the 2024 season, rising from 27,000 tonnes to 45,000 tonnes so far this year, while the export season is continuing. The rapid increase has also reshaped New Zealand's export rankings, with India moving from the country's seventh-largest apple market to its fourth in only two years.

Once the FTA takes effect, apple exporters will receive immediate tariff relief. Import duties will fall to 25 percent from day one under an initial quota of 32,500 tonnes, with that quota gradually expanding to 45,000 tonnes by the sixth year of the agreement. Growers believe these changes will improve their competitiveness in one of the world's fastest-growing consumer markets.

Kiwifruit, forestry and wool sectors prepare for expansion

The agreement is expected to create new opportunities for several other industries that already see India as an increasingly valuable destination for premium New Zealand products. Kiwifruit growers are among those preparing for stronger sales after the FTA introduces duty-free access within a quota that starts at 6,250 tonnes and expands to 15,000 tonnes over six years.

Shipments beyond the quota will also receive reduced tariffs from the beginning, giving exporters greater flexibility to serve the expanding Indian market. Industry estimates suggest the agreement could generate around 125 million dollars in tariff savings over the first five years, providing additional returns for growers and exporters.

Forestry businesses are also rebuilding commercial ties with India. In June, Matariki Forests shipped its first consignment of logs from Bluff to India since 2020, reflecting renewed demand for New Zealand timber products. Exporters dealing in wood chips and pulp have also reported increasing interest from Indian buyers. The country's wool industry has welcomed Indian delegations seeking access to New Zealand's premium-quality fibres as well as expertise in processing technology and advisory services, opening fresh possibilities beyond traditional commodity exports.

Tourism and future trade opportunities gather pace

The closer economic relationship is also becoming visible in tourism. Visitor arrivals from India continue to climb, with approximately 8,000 Indian travellers visiting New Zealand during April 2026, marking one of the strongest monthly performances recorded from the market. Tourism operators see this growth as another sign of stronger people-to-people connections that complement expanding business partnerships.

Air connectivity could soon receive a major boost as Air New Zealand works with Air India on plans for a joint venture that would pave the way for the first direct flights between the two countries. Easier travel is expected to support business exchanges, tourism and investment once the agreement becomes operational.

The FTA is also expected to strengthen opportunities for New Zealand's wine exporters and service providers. India recently agreed to improved market access for these sectors under its trade agreement with the European Union. Thanks to the Most Favoured Nation provision included in the New Zealand-India FTA, New Zealand businesses will automatically receive those same improved conditions once their agreement enters into force.

According to Todd McClay, the early rise in exports demonstrates how businesses moved quickly to build commercial relationships while negotiations were underway, placing themselves in a strong position before tariff reductions officially begin. With parliamentary approval still underway, exporters expect even greater opportunities once the agreement becomes fully operational later this year.