Negotiations with India on a free trade agreement have concluded, setting up major tariff cuts for exporters and a new skills visa process, the Government said today. Signing is expected in the first half of next year.

The agreement eliminates or reduces tariffs on 95% of exports to India, with almost 57% duty-free from day one. That rises to 82% when fully implemented, with the remaining 13% facing sharp tariff cuts.

Key market access outcomes include:

• Immediate tariff elimination on sheep meat, wool, coal and over 95% of forestry and wood exports.
• Duty-free access on most seafood, including mussels and salmon, phased in over seven years.
• Duty-free access on most iron, steel and scrap aluminium over 10 years or less.
• Duty-free access for most industrial products over five to 10 years.
• Kiwifruit duty-free within a quota nearly four times recent average exports; exports outside quota face a 50% tariff.
• Apples receive a 50% tariff cut within a large quota nearly double recent average exports.
• Cherries, avocados, persimmons and blueberries move to duty-free over 10 years.
• Wine tariffs fall from 150% to either 25% or 50% over 10 years, depending on value, with an MFN commitment.
• Mānuka honey tariffs drop from 66% to 16.5% over five years.

Dairy access remains limited. The deal provides duty-free entry for dairy and other food ingredients for re‑export from day one, duty-free access for bulk infant formula and other high‑value dairy preparations over seven years, and a 50% tariff cut for high‑value milk albumins within a New Zealand‑specific quota equal to current export volumes. The agreement includes a “right to negotiate” clause if India grants better dairy access to comparable countries.

Services commitments include MFN provisions and improved openings focused on financial services, e‑payments and fintech. The two countries will establish geographical indication rules, a Treaty of Waitangi clause is included, and there are chapters on customs, technical barriers, SPS measures, culture, traditional knowledge, economic cooperation, and trade and sustainable development. The FTA will be reviewed one year after it enters into force.

The agreement also creates an immigration pathway linked to skills shortages: an average of up to 1,667 non‑renewable three‑year skilled work visas per year in priority areas such as health, education, ICT and engineering, drawing from the existing Green List settings. A working holiday scheme aligned with Australia’s India arrangement will offer up to 1,000 places a year.

Trade and Investment Minister Todd McClay said the deal “creates opportunities New Zealand exporters have never had in India” and would support progress toward the Government’s export growth goals.

The text and detailed schedules are not yet public. Implementation will depend on signing and ratification in both countries. More information: www.mfat.govt.nz/nz-india-fta.