India’s Trade Deal Boosts Whisky Exports to New Zealand

India’s free trade agreement with New Zealand is expected to give a lift to exports of single malt whisky and other Indian spirits by making them more price competitive in a market where current sales are still small, the Confederation of Indian Alcoholic Beverage Companies said on Tuesday.

The industry group said the deal should open duty-free access for Indian alcoholic beverage exports to New Zealand, helping brands build a presence there at a time when Indian liquor shipments to the country remain modest. The agreement was signed as India seeks broader trade ties with New Zealand and as Indian distillers look for new overseas markets for premium products.

Anant S. Iyer, director general of CIABC, said the pact would improve the competitiveness of Indian products in New Zealand even though domestic taxes and regulatory rules would still apply. He said the biggest gains were likely to come in whisky, rum and other premium spirits, with Indian single malts expected to benefit most because they have already gained recognition in global markets.

India’s spirits exports to New Zealand are only about $1 million a year, according to CIABC. In 2024-25, beer exports were about $0.34 million, whisky exports were about $0.13 million and rum exports were about $0.04 million. Other categories such as vodka and gin are negligible, while wine exports are minimal.

At present, alcoholic beverages in New Zealand face excise duties rather than high import tariffs, but CIABC said the FTA should still help by removing remaining duties and giving exporters more certainty. The group said that could make it easier for Indian companies to invest in distribution, marketing and brand building in a market where beer and wine account for a larger share of consumption than spirits.

CIABC also said the agreement could eventually support more imports of New Zealand wine into India, though any increase would likely be gradual because India’s wine market remains relatively small and is shaped by state taxes, distribution limits and consumer awareness. The group said premium wines from New Zealand could find some room in India over time, especially if technical cooperation between wineries in both countries adds value for Indian producers.