India, NZ to enjoy near-100% duty cuts after trade deal:Govt to waive import duties on most of New Zealand goods; Kiwis, wool, others to become cheaper

Kiwifruit may become cheaper in India after the Narendra Modi led-government signed a Free Trade Agreement (FTA) with New Zealand, reducing or removing duties on imports of 95% goods from the arch rivals of Australia. A few days ago, the government had also reduced Goods Services Tax (GST) on kiwis to 0%. The price of the highly nutritious fruit had already reduced a bit after the GST cut, and now with lower or no duties on imports of the national fruit of New Zealand, the fibre-rich product may become cheaper.
The current market price for a single imported kiwi fruit is approximately ₹24. India imports the Zespri brand of the Vitamin C-enriched fruit. Notably, New Zealand will have duty-free access for a large kiwifruit quota (nearly four times current exports), with a 50% tariff applying outside that quota. This is expected to significantly boost the availability and potentially reduce the price of imported New Zealand kiwi fruit once the agreement comes into force, which is expected in 2026. Recent changes in India’s tax policy involve two separate developments on kiwis, with the GST rate and tariffs both being cut under the New Zealand FTA. India’s love for kiwifruit is on the rise, with the tangy and nutritious fruit becoming increasingly popular among health-conscious consumers. While domestic production remains limited, India primarily relies on imports to meet the growing demand. Import vs Export: India is a net importer of kiwifruit. Kiwis are mainly imported, with negligible exports. Key suppliers include New Zealand and other international producers like Chile, Italy, and China. Popular Varieties of Kiwis: Several high-quality kiwifruit varieties are marketed in India: Via, India and New Zealand’s FTA, a host of domestic goods from sectors such as textiles, footwear, engineering and marine products will get duty-free access in New Zealand. The pact is likely to be signed in the next three months and implemented next year. According to the think tank, GTRI, the bilateral trade between India and New Zealand remained modest at $2.1 billion in FY2025. No concession on import of dairy products from NZ India has not given any duty concessions in the dairy sector, which was a key demand for New Zealand. The road ahead Both countries could aim to double two-way trade within five years through early tariff relief on select products, stronger business engagement and sectoral cooperation in agriculture, forestry, fintech and education, supported by the India–New Zealand Business Council. More direct flights, simpler visa rules and mutual recognition of professional qualifications, especially in IT, healthcare and aviation, would further ease movement. In this sense, the India–New Zealand FTA is less a breakthrough than a foundation, providing predictability and strategic alignment while leaving the task of expanding trade to follow.
– GTRI