Increased tariff-free quota and reduced tariffs offer more opportunity for New Zealand kiwifruit in India
Zespri welcomed the India-New Zealand Free Trade Agreement entering into force, a significant milestone that it said will support long-term growth in one of the world’s largest and fastest-growing consumer markets.
The FTA will deliver meaningful tariff relief for New Zealand growers, with the tariff on kiwifruit exports into India removed on up to 15,000 tonnes per year, and the tariff on all volume above that halved to 16.5 percent, down from 33 percent.
Zespri CEO Jason Te Brake said India is a strategically important market for Zespri, with growing consumer demand for healthy, premium fruit and significant opportunities to expand the kiwifruit category over time.
“While interest in kiwifruit continues to grow, high tariffs have historically constrained sales and limited investment in market development. The FTA provides greater certainty to invest in building demand and grow the category in India over the long term.
“The entry into force of this agreement marks an important moment for the New Zealand kiwifruit industry and for our relationship with India. We have strong confidence in India as a future market and are investing to build the market from next year. This New Zealand sales season is coming to an end, and growers will benefit from reduced tariffs from the 2027 season, as work continues on the New Zealand industry-funded support programme for Indian green kiwifruit growers.
“India is home to more than 1.4bn people and is one of the world’s fastest-growing large economies. We see enormous potential to bring premium, healthy kiwifruit to more consumers while delivering strong value back to New Zealand growers.
“The improved market access provided through the FTA gives us the confidence to continue investing in the market, strengthen partnerships with our customers and distributors, and increase awareness of kiwifruit among Indian consumers.”
Alongside this, the Kiwifruit Action Plan (KAP) has been launched as a key deliverable under the FTA. The KAP is a five year-programme focused solely on green kiwifruit, funded by New Zealand kiwifruit growers and delivered by the Bioeconomy Science Institute to support the development of the Indian kiwifruit industry and grow overall consumer demand for kiwifruit in India. The programme is based on the complementary nature of the two industries, with Indian-grown and New Zealand-grown kiwifruit available at different times of the year.
The programme involves working alongside Indian kiwifruit growers in rural communities to support improved production and supply chain performance. A key focus is the establishment of Centres of Excellence, or model orchards, in key growing regions, demonstrating best practice and providing training tailored to Indian conditions. The first two Centres of Excellence are under establishment in Nagaland and Uttarakhand.
“The Centres of Excellence demonstrate the industry’s commitment to ensuring the benefits of the agreement are shared by growers and communities in both countries,” said Te Brake.
“This partnership is about creating value on both sides. We believe that by working together we can create lasting benefits for growers, consumers and communities in both countries.”
Zespri also acknowledged the efforts of the New Zealand and Indian governments, negotiators and officials whose work helped secure the agreement and strengthen the relationship between the two countries.
“Trade is critical to New Zealand’s prosperity. New opportunities like this will enable New Zealand exports and support jobs and communities. We have strong confidence in India and expect the deal to deliver significant benefits over time,” he said.
