Indian Economy News

Australia approves FTA with India; to implement on mutually agreed date

  • IBEF
  • November 23, 2022

After receiving approval from the Australian Parliament on Tuesday, the free trade agreement (FTA) between India and Australia will now go into effect on a mutually convenient date.

Once the agreement is put into effect, more than 6,000 varied industries from India, including textiles, leather, furniture, jewellery, and machinery, would have duty-free access to the Australian market.

According to the agreement, Australia will grant zero-duty access to India starting on day one for around 96.4% of exports (by value). This applies to a wide range of goods that are now subject to a 4-5% customs charge in Australia.

Textiles and apparel, a few agricultural and fish products, leather goods, furniture, sporting goods, jewellery, equipment, electrical items, and railroad trains are all labour-intensive industries that would greatly benefit.

In 2021-2022, India's exports of products to Australia totalled US$ 8.3 billion, while its imports totalled US$ 16.75 billion.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.