In full: Sunil Kaushal on the NZ–India FTA and what it means for Waikato and Taranaki

New Zealand’s free trade agreement with India is now in effect. The Waikato Advocate asked India New Zealand Business Council Chief Executive Sunil Kaushal what it means for businesses, farmers and households across Waikato and Taranaki.

The five questions and his written answers are presented in full below, followed by the INZBC media release issued on 20 October 2026. The interview responses are his own words; forecasts and expectations are attributed to him.

Read our reporting: what the India trade deal means for Waikato and Taranaki →

The full written interview

1. What will the New Zealand–India Free Trade Agreement mean for businesses, farmers and local economies across Waikato and Taranaki?

For Waikato and Taranaki, this is a particularly relevant FTA because both economies have deep exposure to farming, food production and agribusiness. The immediate opportunity that are is there is sheep meat. New Zealand sheep meat has been paying a 33 percent tariff in India. That becomes zero. Before Australia obtained tariff-free access, New Zealand supplied around 85 percent of India’s imported sheep meat. Our share subsequently fell to about 9 percent while Australia rose to around 91 percent. The FTA puts our farmers back on a level playing field. That matters for sheep and beef country across parts of Waikato and the Taranaki hill country. More competitive exports can flow through from processors and exporters to farm incomes, rural contractors, transport companies and local spending. There is a similar opportunity in mānuka honey. India’s tariff falls from 66 percent to 16.5 percent over five years, and New Zealand is the first country to receive preferential access for honey. This has relevance for Māori enterprises because MFAT specifically identifies mānuka honey, forestry and sheep meat as areas where the Māori economy can benefit.

2. Given the importance of dairy and agriculture to both regions, what opportunities and limitations does this agreement present for our primary industries?

This is a very good primary-sector agreement, but it is not a comprehensive dairy agreement. Most mainstream dairy products remain outside India’s tariff concessions. For regions such as Waikato and Taranaki, that is a limitation.

However, dairy is not completely absent. Tariffs on bulk infant formula and certain dairy-based food preparations are phased out over seven years, there is improved access for milk albumins, and the agreement contains a mechanism allowing New Zealand ingredients to enter India duty free where Indian manufacturers use them in products for re-export. India has also agreed to consult New Zealand if it provides broader dairy access to a comparable economy in the future.

Outside mainstream dairy, the gains are much stronger. Sheep meat goes from 33 percent to zero immediately, wool becomes duty free, more than 95 percent of forestry exports enter tariff free from day one and mānuka honey receives preferential access. The Government’s modelling expects agri-food and forestry exports to India to be around $260 million higher annually in 2027 than without the FTA.

There is also an agritech opportunity. Fieldays at Mystery Creek is already becoming part of the India relationship. In 2026, India participated officially for the first time and a delegation of ten Indian agribusiness entrepreneurs visited, covering dairy technology, sustainable beekeeping, AI crop monitoring, farm machinery and precision agriculture. Several were actively looking for New Zealand partnerships. That means Waikato should think about India not only as somewhere to sell food, but somewhere to sell agricultural knowledge, technology and capability.

3. With many New Zealand households facing financial pressures, could this agreement lead to lower consumer prices, increased employment or stronger regional economic growth?

New Zealand removes its remaining tariffs on Indian goods when the agreement comes into force. That can reduce costs on products such as clothing, textiles, footwear, machinery, pharmaceuticals and other manufactured goods, and give consumers more choice. MFAT itself says Kiwi consumers could see lower prices for some Indian-made electrical goods, machinery, fabrics and textiles.

The bigger regional effect is likely to come through income rather than supermarket prices. If farmers and exporters sell more sheep meat, honey, wool, forestry products or specialist food ingredients, that revenue moves through processors, transport operators, rural suppliers and regional businesses.

The official modelling supports a measured view. It predicts increased employment in New Zealand’s agri-food sectors and higher real wages, but says the overall employment changes are relatively small. So this as a medium-term regional growth opportunity, not an overnight jobs programme. There are also wider relationship benefits. Hamilton will host two matches during India’s upcoming New Zealand cricket tour, at Seddon Park on 1 and 10 November. Those sporting links bring visitors and spending into accommodation, hospitality and tourism alongside the trade relationship. We also often neglect the impact that the local Indian Expat community brings. PN, NP and Hamilton have growing communities, and the links they provide through education, tourism, health, and sports many times go unnoticed.

4. How can smaller businesses across Waikato and Taranaki take advantage of the agreement, particularly those without experience in international trade?

The biggest mistake a small business can make is to look at 1.4 billion people and think it has to tackle all of India. It does not. FTA gives NZ businesses access to 1.4 billion people, but Kiwi businesses should focus on the 750 million middle-class Indians estimated to have the same income level as Kiwis by 2030, which is only 4 years away.

Start with one product, one part of India and one trusted partner. A Waikato honey producer, agritech company, or specialist food manufacturer should first confirm whether its product qualifies for the FTA, understand the tariff and rules of origin, then identify the Indian state, customer segment, and distributor that best fit the business. The FTA includes a dedicated SME chapter designed to connect small businesses with export-assistance organisations, incubators, market information, and potential business partners. NZTE has also established its India support programme, including Illuminate India, to help exporters understand the market and make connections. And some very practical barriers have been reduced. Indian customs must release New Zealand goods within 48 hours and endeavour to clear perishables within 24 hours. For a smaller exporter, time sitting at the border is money tied up in stock. This is also where organisations such as INZBC can help. A small Waikato or Taranaki business may not need a large India office. It may need the right introduction, distributor, adviser and market intelligence to make its first transaction work. INZBC is also working across NZ Inc to run workshops across the region in the coming months.

5. Looking ahead 12 months, what tangible benefits should regional New Zealanders expect to see, and how will you measure whether the agreement has been successful?

India is a relationship-driven market and some benefits will take several years. We Kiwis are transactional and look at the numbers. This is a big difference. Hence, I would be cautious about judging the FTA by a single headline trade number after 12 months.

But we should expect to see measurable changes in the first year. I am keen to look at whether sheep meat begins recovering market share, whether mānuka honey exports increase from their very small base, whether more Waikato and Taranaki businesses start exporting to India, and whether existing exporters report larger orders or better margins. Sheep meat will be one of the clearest tests. New Zealand once accounted for around 85 percent of India’s imported sheep meat, but our share fell below 10 percent after Australia gained tariff-free access while New Zealand continued paying 33 percent. From 20 October, that tariff falls to zero for New Zealand as well. I would also watch mānuka honey. India’s tariff falls from 66 percent to 16.5 percent over five years, giving New Zealand preferential access that no other country currently has.

Success after 12 months should therefore mean more regional businesses using the agreement, more products entering India, stronger commercial partnerships and more export revenue returning to farming communities and local economies.

INZBC media release — full statement

NZ India FTA Enters Into Force, Opening New Opportunities for Business

20 October 2026 · India New Zealand Business Council

The following statement was supplied by INZBC. Its embargo lifted at 12:01 am NZDT on Tuesday 20 October 2026. Quoted passages are highlighted; the release wording is retained.

The New Zealand–India Free Trade Agreement enters into force today, marking a new phase in the economic relationship between the two countries. The agreement improves market access across a wide range of sectors and gives greater certainty for businesses looking to trade, invest and build long-term commercial partnerships in India.

India New Zealand Business Council (INZBC) Chair Bharat Chawla said the agreement is an important milestone and kicks off the next phase of the relationship.

“The agreement improves the conditions for businesses to operate but the real value will come from the commercial partnerships, investment and trade that grow from here,” says Mr Chawla.

From today, 57 percent of New Zealand's current exports to India become tariff free, rising to 82 percent as the agreement is implemented. Tariffs will also be reduced on a further 13 percent of current exports.

Two-way trade between New Zealand and India was worth NZ$3.95 billion in the year ended December 2025 and last year Prime Minister Christopher Luxon and Prime Minister Narendra Modi set an aspirational goal of growing trade to NZ$7 billion by 2030.

INZBC Chief Executive Sunil Kaushal said the agreement creates new opportunities across sectors but success will depend on businesses taking advantage of them.

“Market access is important but long-term success in India comes from understanding the market, building trusted relationships and committing for the long term. “India is one of the world’s fastest-growing major economies. New Zealand businesses have strengths in areas such as food and beverage, technology, education, advanced manufacturing and professional services that are highly valued in that market.”

The agreement delivers immediate benefits, with more than 95 percent of forestry exports tariff free into India from day one, alongside sheep meat, wool and coal. The agreement also includes commitments aimed at improving customs processes and reducing barriers to trade.

Mr Kaushal said INZBC's focus now shifts from supporting the case for an agreement to helping businesses turn the opportunities it creates into commercial outcomes.

“We have spent many years building momentum in the relationship. The agreement gives businesses access and the next stage is about implementation.”

“INZBC is committed to helping businesses understand the opportunities available, make the right connections and build the relationships that underpin successful trade between New Zealand and India.”

ENDS

About INZBC

The India New Zealand Business Council has worked since 1988 to strengthen trade, investment and economic cooperation between India and New Zealand. INZBC is an independent, member-based organisation that supports businesses, exporters, importers and investors across the bilateral relationship.

Media contact

Sunil Kaushal · Chief Executive, INZBC · 021 280 4189 · sunil@inzbc.org