Duty-Free Access Under India–NZ FTA To Boost Indian Alcobev Exports: CIABC

New Delhi, Apr 29 (KNN) Duty concessions under the proposed India–New Zealand free trade agreement (FTA) are expected to boost exports of Indian alcoholic beverages, particularly single malt whisky, industry body Confederation of Indian Alcoholic Beverage Companies (CIABC) said.

The industry body noted that given the current low export base, the FTA is expected to aid India;s market entry and brand building, especially in segments such as whisky, rum and premium spirits.

CIABC Director General Anant S Iyer said, "The FTA is expected to provide duty-free access for Indian alcoholic beverage exports into New Zealand, improving price competitiveness for Indian products in that market," PTI reported.

Low Base, High Growth Potential

India’s exports of alcoholic beverages to New Zealand remain modest, at around USD 1 million annually. In 2024–25, beer exports stood at USD 0.34 million, followed by whisky (USD 0.13 million) and rum (USD 0.04 million), while categories like vodka, gin and wine recorded negligible shipments.

The trade pact is expected to encourage Indian alcobev companies to sharpen their focus and develop the market, as wines and beer account for a larger share of consumption in New Zealand, Iyer noted.

"Import tariffs are already low, but the FTA is expected to provide duty-free access and greater certainty, while domestic taxes and regulatory requirements will continue to apply," he added.

Outlook for Imports and Collaboration

On the import side, wine shipments from New Zealand to India may see a gradual increase as market access improves. 

"We might see some increase in imports in premium wines which New Zealand wineries produce and export worldwide," Iyer said.

However, he emphasised that the overall impact is likely to remain limited due to India’s relatively small wine market, constrained by state-level duties and distribution challenges.

(KNN Bureau)