In what is widely considered a massive step towards economic partnership between the two countries of India and New Zealand, the free trade agreement (FTA) is coming into force next month. This will have a significant impact on trade, especially on the alcobev industry. From what exactly the FTA entails to what it would mean for the alcohol industry in India, here are all of the other important details that you would need to know about this particular update on the economic ties between India and New Zealand.
According to the press release shared by the Press Information Bureau (PIB) of India, the trade agreement between India and New Zealand was signed on 27th April, 2026. This trade agreement will come into effect on 20th October, 2026.
Once it does, 100 percent of India’s exports will get access to New Zealand completely duty-free. New Zealand, too, will reduce or eliminate tariffs on around 95 percent of its exports to India. Once these initial tariff reductions are done, other tariff reductions are also scheduled to take effect.
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The most significant for the AlcoBev industry here is the reduction in wine tariffs. The initial tariff of 150 percent will fall to just 25 percent to 50 percent over the next ten years, depending on the price of a particular product.
This means that higher-priced, premium bottles will enjoy the lowest duty tier, which is down to 25 percent. This will make high-end New Zealand labels significantly more accessible. What is more, lower-priced bottles will still see duties cut down to 50 percent, which would still keep them competitive.
New Zealand is known the world over for its specific, high-demand cool-climate wines that already align well with urban Indian palates. These include Central Otago Pinot Noir, Marlborough Sauvignon Blanc, and Marlborough Pinot Noir.
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This particular trade agreement is undoubtedly hoped to be fruitful for both countries. By slashing tariffs, both countries can now avail of exports at a lower rate, enabling them to further their economic ties.
