India Trade Deal Opens New Zealand Market to Duty-Free Spirits

India’s free trade agreement with New Zealand is expected to give a lift to exports of single malt whisky and other alcoholic beverages by opening the market to duty-free access, according to the Confederation of Indian Alcoholic Beverage Companies, which said the deal could help Indian brands gain a stronger foothold in a country where current sales remain small.

The industry group said on Tuesday that the agreement should improve price competitiveness for Indian liquor in New Zealand, where imports are already subject to relatively low tariffs but still face excise duties and local regulatory requirements. The group said the bigger benefit may come from market entry and brand building, especially for whisky, rum and premium Indian spirits that have been trying to expand abroad.

Anant S. Iyer, the director general of CIABC, said India’s exports of spirits to New Zealand are only about $1 million a year. He said some premium products, particularly Indian single malts, are already being shipped there, but that the new trade arrangement could encourage companies to pay more attention to the market.

In 2024-25, India’s alcohol exports to New Zealand were led by beer at about $0.34 million, followed by whisky at $0.13 million and rum at $0.04 million, according to CIABC. Exports of vodka and gin were described as negligible, while wine shipments remained minimal.

Iyer said the agreement was likely to help Indian single malts in particular because they have already won recognition in global markets. He said New Zealand consumers buy more wine and beer than spirits, which means growth for Indian liquor may be limited at first but could build over time if companies invest in distribution and promotion.

The group also said the deal could eventually support wine imports into India from New Zealand, though it expects any increase to be gradual. CIABC said India’s wine market remains relatively small compared with spirits and beer and is shaped by state taxes, distribution rules and consumer awareness. It added that premium wines from New Zealand could find some demand in India, especially in the segment priced above Rs 1,500 for a 750 ml bottle.

New Zealand’s wine industry could also offer technical collaboration opportunities for Indian producers, CIABC said, as both sides look for ways to expand trade under the new agreement.