Indian exporters get 100% duty-free New Zealand access

India’s trade pact with New Zealand took effect on Tuesday, giving Indian exports 100 percent duty-free access to the New Zealand market, officials said in government statements.

The agreement matters for smaller manufacturers, farmers and labor-intensive sectors because it removes tariffs across Indian exports while keeping sensitive Indian sectors, including dairy, outside the opening. Officials said the government is targeting a doubling of bilateral trade in the coming years.

Dairy stays outside pact

Officials said farmers are expected to gain wider access for fruits, vegetables, spices and other agricultural produce, while cooperation under the pact is aimed at improving productivity and supporting rural incomes. Dairy remains protected under the agreement, officials said.

The pact also expands services access for Indian companies in information technology, professional services, construction, tourism and audio-visual services. Pharmaceutical and medical device exporters are expected to face faster access to New Zealand because inspection approvals from globally recognized regulators will be accepted, officials said.

Officials said the agreement could help facilitate up to $20 billion in New Zealand investment into India across agriculture, manufacturing, infrastructure and startups. A JCB machine made in Pune was flagged as the first such export to New Zealand under the trade opening.

From Oct. 20, the main test is whether tariff-free access turns into orders for Indian exporters and whether the investment target advances beyond government statements into announced projects.