An India trade deal could create new opportunities for Waikato businesses, senior writer Mary Anne Gill reports.
Listening to details of the New Zealand-India Free Trade Deal from third left, Waikato chamber chief executive Don Good, his Excellency Dr Madan Mohan Sethi – Indian Consul General, Company X’s David Hallett, Waipā District Council chief executive Steph O’Sullivan and mayor Mike Pettit, Fieldays chief executive Richard Lindroos and Vangelis Vitalis, Ministry of Foreign Affairs and Trade chief negotiator. Photo: Mary Anne Gill
The India–New Zealand Free Trade Agreement could be as economically significant for regional exporters as the China deal signed more than 20 years ago, Trade and Agriculture Minister Todd McClay told a packed room of Waikato business leaders last month.
Speaking alongside the Ministry of Foreign Affairs and Trade chief negotiator Vangelis Vitalis and India’s Consul General to New Zealand, Madan Mohan Sethi, McClay said the agreement gives New Zealand producers and processors something they have long lacked in the Indian market: certainty and a level playing field.
“We’re five million people trading with a country of 1.4 billion. The world is knocking on India’s door. For a country our size to secure a deal this quickly – and one that in many areas is better than deals signed by much larger economies – is significant.
“But the congratulations should be short. Now we have to make it work.”
Todd McClay speaking at the New Zealand-Indian Free Trade Agreement function. Photo: Mary Anne Gill
McClay said free trade agreements reduce risk by locking in clear rules between governments, giving exporters greater confidence to invest and grow.
The absence of a deal with India has already proven costly. Before Australia signed its agreement with India in 2022, New Zealand supplied about 89 per cent of India’s imported lamb. Today, about 91 per cent comes from Australia.
“It’s because a 30 per cent tariff at the border makes it almost impossible to compete. When that drops to zero, we’re back on an equal footing.”
For Waikato, the agreement creates immediate opportunity for sheep and beef exporters, particularly as demand grows among an estimated 500 million middle‑class consumers who eat meat.
“It’s one more large market. If another economy slows, you have an alternative you can develop. That means fairer competition and better prices.”
While dairy access remains sensitive for India, McClay said the deal still delivers meaningful gains for higher‑value products manufactured in Waikato and Bay of Plenty.
Forestry, kiwifruit and honey – set to be big winners under the deal.
“We’ve secured access for very high‑value dairy proteins – products worth $25,000 to $30,000 a tonne – not just bulk commodities,” he said.
“Infant formula will move to tariff‑free over time, which is significant given the scale of manufacturing in Waikato, including dairy and dairy‑goat operations.”
He also pointed to “import for re‑export” opportunities, where New Zealand dairy ingredients can be blended or further processed in India and exported into markets where India already has trade agreements.
“That’s attracting interest from Indian companies and from New Zealand firms looking to establish manufacturing bases in India.”
Simon Devoy, Employers and Manufacturers Association head of Membership and Export, said the agreement could significantly shift export opportunities.
Simon Devoy
“This agreement opens huge opportunities. Nearly all of our major exports, from sheep meat to mānuka honey, will see significant tariff relief,” he said.
“It’s a chance for Kiwi businesses to connect directly with Indian markets. We’re seeing opportunities across agriculture, tech, healthcare and more.”
New Zealand previously exported about $300 million worth of wood products to India, trade which stalled after regulatory changes around fumigation.
“There are real opportunities — but our preference is processed timber, not just logs. The more value added in New Zealand, the better for jobs and regional growth.”
Devoy rejected suggestions New Zealand lacked processing capacity, pointing to reopened and expanding mills in Gisborne and Whakatāne exporting structural timber into overseas markets.
Bay of Plenty’s horticulture and apiculture sectors are also well positioned, particularly as tariff reductions improve competitiveness for premium products.
McClay highlighted wool as another beneficiary, noting India already imports New Zealand wool to blend with domestic fibre for strength and quality.
Waikato Chamber of Commerce chief executive Don Good. Photo: Mary Anne Gill
“Even the carpet in the Indian Parliament is made from New Zealand wool,” he said.
Wine provided another illustration of how tariffs distort markets. New Zealand wine entering India currently faces tariffs of up to 150 per cent, turning a $10 bottle into a $25 purchase for consumers.
“That’s been negotiated down significantly,” McClay said, adding that a “most favoured nation” clause ensures New Zealand automatically benefits if India later offers better access to larger trading partners.
Beyond goods, the agreement places new emphasis on investment and services, with India building universities, airports and infrastructure at scale.
McClay said overseas investment can help firms build skills, scale and international networks.
“Trade agreements are about enabling companies to establish, invest and grow offshore with confidence.”
India has committed to a single‑desk investment facilitation service for New Zealand businesses, while New Zealand will actively promote itself as an investment destination.
McClay warned free trade agreements only deliver if businesses use them. After the UK deal came into force, around 40 per cent of exporters initially continued trading under old tariff regimes because they were unaware of the new settings.
“That’s why we’ll keep doing roadshows, working with chambers and getting information out,” he said. “This is a piece of paper unless businesses operationalise it.”
His message to regional exporters was clear: India is not a distant or abstract opportunity.
“Whatever you think of India today, next year it will be bigger.”
The agreement gives regional businesses a clearer path into the Indian market.
Todd McClay the minister of Trade & Investment, with at left Vangelis Vitalis, Ministry of Foreign Affairs and Trade chief negotiator and his Excellency Dr Madan Mohan Sethi, Indian Consul General to New Zealand. Photo: Mary Anne Gill
