India may cut tariff on kiwi fruit from New Zealand

India and New Zealand announced the launch of negotiations towards a deal in March 2025

India may grant tariff concessions on kiwi fruit from New Zealand as part of a trade deal the two sides are negotiating, a senior government official said. This fruit attracts a basic customs duty of 30 percent.

India and New Zealand opened the trade deal negotiations in March and concluded the first round of talks for a proposed Free Trade Agreement (FTA) in New Delhi between May 5 and 9. The next round will be held in July.

“Kiwi is a very important product for New Zealand, while it is not a very sensitive item for us. India already has a Memorandum of Cooperation (MoC) with them, so they would want to help us with our kiwi cultivation as well,” the official said.

India and New Zealand announced the launch of negotiations towards a deal in March and concluded the first round of negotiations for a proposed Free Trade Agreement (FTA) in New Delhi between May 5 and 9. The next round will be held in July 2025.

While both countries aim to conclude the FTA this year, commerce minister Piyush Goyal said on June 19 he expects negotiations to close in another three to four months.

Earlier this year, the two sides agreed to enhance bilateral cooperation on horticulture by promoting knowledge and research exchanges, development of post-harvest and marketing infrastructure. This included an aim to mutually develop New Zealand’s and India’s kiwi fruit sectors.

“What we can gain is good technology and practices because we are working on building our own kiwi production, which is very low, so if we get good practices from them, we can increase our production. Paradoxically it helps New Zealand also, because their production is very seasonal,” the official added.

India imported kiwis worth $63.72 million in FY25, a rise of nearly 25 percent on-year. Out of this, shipments amounting to almost $17 million came from New Zealand, registering an increase of more than 157 percent versus 2023-24.

Chile continues to be India’s largest supplier of kiwi fruit at $23.53 million in the previous fiscal, since the country enjoys a lower 15-percent import duty due to a preferential trade agreement.

India and New Zealand's bilateral relationship has been on an upward trajectory, with merchandise trade reaching $1.3 billion in 2024–25, a growth of 48.6 percent on-year.

India’s major exports to New Zealand include pharmaceuticals, machinery, precious metals and stones, textiles, vehicles, and apparel, it imports wool, iron and steel, aluminium, fruits and nuts, wood pulp, among others from Wellington.