New Zealand-India FTA opens door to major kiwifruit opportunity

Media Release

05 Jan 2026

Zespri welcomes the conclusion of the New Zealand-India Free Trade Agreement (FTA), marking a new era in the relationship and unlocking an enormous opportunity for kiwifruit.

Under the agreement and in a first for India, New Zealand growers will see the tariff on kiwifruit exports into India removed on up to 15,000 tonnes per year, with all volume on top of that subject to a reduced tariff of 16.5 percent, down from the current 33 percent. Zespri’s sales into India have been heavily constrained by the tariff which cost New Zealand growers $9 million on $27 million of sales last season. Zespri sold around 7,200 tonnes into India this year.

In return the Kiwifruit Action Plan (KAP) will be launched as a flagship deliverable under the FTA, with the New Zealand Institute for Bioeconomy Science Ltd (BSI) and the New Zealand kiwifruit industry working alongside Indian kiwifruit growers in rural communities to support improved production and supply chain performance.

Zespri CEO Jason Te Brake says the agreement unlocks one of the world’s largest markets for New Zealand growers.

“India represents a huge opportunity for kiwifruit, with the world’s largest population and fastest-growing large economy. Indian consumers are increasingly focused on health and wellbeing and looking for high quality, nutritious products to support this. The market access delivered through the FTA will allow us to invest to build high-value demand, providing the world’s best kiwifruit to more Indian consumers and delivering leading value to growers.”

Mr Te Brake says the agreement has been many years in the making.

“Zespri and Plant & Food Research (now part of the New Zealand Institute for Bioeconomy Science Ltd) have been working closely for several years with the governments of New Zealand and India to improve kiwifruit market access in return for supporting local growers whose product is counter-seasonal to New Zealand. To demonstrate the value of this partnership, the work included extensive two-way engagement, visits and the preparation of a comprehensive scoping study to support delivery of the cooperation. The conclusion of the FTA has made this a reality.

“We acknowledge Trade Minister Todd McClay’s drive and commitment to getting us to this point, alongside the hard work of New Zealand’s negotiators, the outstanding work of the team at the New Zealand High Commission in Delhi and the commitment of successive governments to improve access for New Zealand exporters,” says Mr Te Brake.

Mr Te Brake also acknowledged the huge amount of support from India’s Ministry for Agriculture and Farmers Welfare and state governments who have been strong supporters of the cooperation proposal, recognising the mutual benefits it presents.

“Zespri believes in making a positive contribution in the markets where we operate around the world. This is a partnership which creates value for growers and communities in both countries.

"By working together, we can help Indian growers increase their returns, expand the market and have more Indian consumers enjoy great-tasting, healthy kiwifruit all year round,” says Mr Te Brake.

The Kiwifruit Action Plan

The Kiwifruit Action Plan (KAP) is a flagship project for broader New Zealand-India collaboration, falling under the Horticulture Memorandum of Cooperation signed during the Prime Minister’s trade delegation to India earlier this year. New Zealand and Indian kiwifruit seasons are counter-seasonal and complementary, allowing for year-round supply to Indian consumers and supporting rural development - especially for small-scale, family-run farms.

The KAP will see the BSI partner with Indian growers over five years to improve production, quality, and supply chain performance. Centres of Excellence (CoEs) or model orchards will be established in key growing regions, demonstrating best practice and providing training tailored to Indian conditions. The programme will also include technical exchanges, with regular visits by New Zealand experts and opportunities for Indian growers and officials to visit New Zealand.

The agreement will be governed by representatives from both governments, research institutes, and industry, ensuring strong oversight and regular progress reviews.

About the Indian kiwifruit industry
 

• India’s kiwifruit sector is young but strategically important for rural livelihoods, especially in the North and North-Eastern states, with around 5,390 hectares planted and 18,280 tonnes produced in 2023/24.
• The industry is seeing rising domestic demand but faces challenges such as fragmented supply chains, small average fruit size, variable quality and limited postharvest infrastructure.
• Most Indian kiwifruit is sold by weight at flat prices, regardless of size or grade, which reduces incentives for growers to invest in quality improvements.
• Farmer Producer Organisations are helping to aggregate supply, negotiate better prices, and coordinate logistics - empowering smallholders and supporting shipments to major cities like Kolkata and Delhi.
• Adoption of best-practice nursery, orchard management and postharvest protocols - supported by New Zealand expertise – have the potential to increase Indian kiwifruit production by up to 10 times.
• There is significant opportunity for value addition (such as dried fruit and purée), improved grading and cold chain development, which will help Indian kiwifruit reach premium domestic and export markets.