India-New Zealand Trade Deal Takes Effect Oct 20 With Duty Cuts

The free trade agreement between India and New Zealand comes into force on Tuesday, October 20, with the Finance Ministry notifying the first set of lower customs duties on goods imported from New Zealand. The notification sets revised basic customs duty and cess rates for eligible products such as sheep meat, kiwi fruit, some fish, wine and manuka honey, The Tribune reported.

Zero Duty on Sheep Meat, Lower Rates for Kiwi Fruit

Under the notification, fresh, chilled and frozen sheep meat from New Zealand will attract no basic customs duty, Agriculture Infrastructure and Development Cess or health cess. Kiwi fruit priced at USD 2.50 per kg or more will pay 15% basic customs duty, and designated fish will pay 25.71%, subject to classification and conditions.

The cuts apply only to specified tariff lines. Several items come under tariff-rate quotas, which allow a fixed quantity at the lower rate, and importers must show proof that the goods originate in New Zealand. Apples and manuka honey also get lower duties within annual quotas and minimum import prices, the Free Press Journal reported.

Dairy and Sensitive Farm Goods Kept Out

India has offered concessions on about 70% of its tariff lines and kept the rest outside the deal. Milk, cream, whey, yoghurt, cheese and butter are excluded, as are onions, chana, peas, corn, almonds and sugar, according to the Free Press Journal. This protects the dairy sector and many crops grown by Indian farmers.

The agreement was signed on April 27 by Commerce and Industry Minister Piyush Goyal and New Zealand Trade Minister Todd McClay. Goyal had said Vijaya Dashami was chosen as the date for it to take effect.

Duty-Free Access for Indian Exports

For Indian exporters, the deal gives zero-duty access on all goods exported to New Zealand, All India Radio reported when talks concluded in December 2025. New Zealand has also committed to help bring USD 20 billion of investment into India over 15 years.

For shoppers, prices of some imported fruit, meat and honey may come down if importers pass on the savings, though the effect will vary by product and may take time.

The deal adds to India’s recent trade and diplomatic activity, covered on our Economy page, including the upcoming visit of Polish Prime Minister Donald Tusk.

Based on reporting by The Tribune, Free Press Journal and All India Radio.

Image: Luc Viatour / Wikimedia Commons.