Winemakers look to India as FTA takes effect

The India-New Zealand Free Trade Agreement (FTA) has come into force this week and New Zealand Winegrowers (NZW) is celebrating the improved access for New Zealand wine to one of the world’s fastest-growing economies.

It says the agreement gives New Zealand wine brands greater confidence to build their presence in India, with tariffs reducing progressively over the next decade. 

The FTA also includes a Most Favoured Nation commitment for wine. If India agrees more favourable tariffs for wine in a future FTA with another country, eligible New Zealand wine will automatically receive the same tariff treatment.

In addition, the FTA includes a dedicated Annex on Trade in Wine, Whisky and Other Distilled Spirits. It aims to facilitate trade through greater transparency, regulatory cooperation, and clearer treatment of wine-specific issues, and it establishes a working group on topics such as technical matters, labelling, and certification. 

Improved access under the FTA is expected to make the market increasingly attractive to exporters. Depending on the wine’s value, tariffs on eligible New Zealand wine will reduce over ten years from 150% to either 50% or 25%.

New Zealand wine exports to India have historically been modest, but grew 48% in the last year to just under NZ$438,000. 

India’s wine market is largely concentrated in three cities: Mumbai, Delhi and Bengaluru. Together, those cities account for half of the country’s wine consumption and are home to around 70 million people. This is a market 13 times the size of New Zealand and is comparable to the United Kingdom. 

Red wine accounts for a significant share of imported wine to India, creating opportunities for a range of New Zealand wine styles alongside Sauvignon Blanc. Sales of wine are also growing. In the year to March 2026, Maharashtra (of which Mumbai is the capital city) sold a record 13 million litres, or around 1.4 million cases, while imports grew 14% by volume in 2025. 

New Zealand Winegrowers says that together, these trends create a significant opportunity for New Zealand’s wine exporters. 

“We thank Ministers and officials for their work to secure improved access to a market with considerable long-term potential,” says NZW Chief Executive Anishka Jelicich.

“By working to bring the FTA into force quickly, the Government has ensured that New Zealand will also benefit from the Most Favoured Nation preferential tariff rates that have been negotiated under the EU India FTA. Those tariff reductions are more substantial and would not have been available to us if the EU deal had entered into force first. 

“India remains largely untapped for New Zealand wine, so our focus is on helping our members assess the opportunity through practical market intelligence and insights, connections with key stakeholders and opportunities in-market to build their brands.”

New Zealand Winegrowers recently hosted India’s only Master of Wine, Sonal C Holland, as a keynote speaker at its annual Wine Business Forum in Wellington. Her message to the audience was clear; the FTA removes a significant barrier, but long-term success in India will require commitment, patience and strong local relationships. 

“Next month, we look forward to working with New Zealand Trade and Enterprise (NZTE) at ProWine Mumbai. The major international trade fair will include a 20 strong contingent of businesses showcasing New Zealand wine to the Indian trade. These types of events are incredibly valuable for our members, helping them to build distributor relationships and a pipeline in a growing premium segment,” says Jelicich.