- New Zealand eliminates 5% tariffs on covered Indian steel products
- India to phase out tariffs on most New Zealand steel imports over 10 years
The India-New Zealand Free Trade Agreement (FTA), signed on 27 April 2026, came into force on 20 October, removing customs duties on covered Indian exports to New Zealand. The agreement eliminates tariffs of up to 5% on Indian steel products that previously faced import duties and provides duty-free access to key steelmaking inputs, including coking coal and metal scrap. These provisions give Indian steel exporters a direct tariff advantage in New Zealand while extending duty-free treatment to eligible raw material imports.
Zero-duty access strengthens Indian steel exporters’ price competitiveness
Before the FTA, New Zealand imposed tariffs of up to 5% on several Indian steel products. With these duties now removed, covered Indian products gain a direct price advantage in the New Zealand market, where import tariffs previously added to their landed costs.
The products highlighted under the agreement include steel bars and rods, wires, tubes, pipes and pipe fittings, structural steel, cables and fasteners. Steel pipes, including seamless and welded varieties, and pipelines used in oil and gas projects are also among the products identified as having export potential.
India’s steel exports to New Zealand increased from 1,127.93 tonnes in 2024 to 2,511.44 t in 2025, rising by around 123%. The FTA removes the tariff barrier on covered products, improving the commercial position of Indian suppliers and creating scope to build on the existing trade base.
Duty-free coking coal, scrap widen access to steelmaking inputs
The agreement also removes import duties on coking coal and metal scrap. Coking coal is used in blast furnace-based steel production, while ferrous scrap serves as a key raw material for secondary steelmaking.
For Indian manufacturers importing eligible materials from New Zealand, duty-free treatment reduces the customs duty component of landed costs. This provides a direct cost benefit on qualifying imports and improves the attractiveness of sourcing these materials from New Zealand relative to supplies subject to applicable import duties.
India to phase out tariffs on New Zealand iron and steel
The agreement also opens India’s market to New Zealand-origin iron and steel under product-specific tariff concessions. Before the FTA, Indian import duties on these products ranged from 0% to 22%.
Under the agreement, India will eliminate tariffs on almost all New Zealand iron and steel goods over a period of up to 10 years. Unlike the immediate duty removal on covered Indian exports to New Zealand, India’s concessions will be implemented according to the applicable product-specific schedules. The extent of the benefit will therefore vary across steel categories and over the phase-out period.
New Zealand exported $81 million worth of iron and steel to India in 2025, establishing an existing trade base. The phased tariff reductions provide New Zealand suppliers with progressively improved access to the Indian market as the relevant concessions take effect.
Outlook
The removal of tariffs is expected to improve Indian steel suppliers’ prospects in New Zealand, particularly in product categories where the 5% duty previously added to landed costs. This could support further export growth and help Indian suppliers expand their presence in the market. Duty-free access to coking coal and scrap may also encourage sourcing from New Zealand, where prices and freight costs are competitive. Meanwhile, imports of New Zealand-origin steel into India could increase gradually as tariff concessions are phased in over the next decade.
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