Indian Economy News

India–Australia ECTA Completes Four Years, Strengthening Bilateral Economic Partnership

The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed four years since its signing on April 2, 2022. This is a significant milestone in the economic cooperation between the two countries. Over these four years, India-Australia trade has seen significant growth. The exports from India to Australia have increased manifold and have touched Rs. 79,193 crore (US$ 8.5 billion) in FY25 compared to Rs. 37,268 crore (US$ 4 billion) in FY21. The overall trade between both countries has touched Rs. 2,24,540 crore (US$ 24.1 billion) in 2024-25. In FY26, the overall trade between both countries stood at Rs. 1,79,818 crore (US$ 19.3 billion) till February. The Ind-Aus ECTA has played a vital role in reducing trade barriers between both countries and providing opportunities for MSMEs and exports.

Significant structural changes have resulted from the ECTA in terms of a deepening tariff liberalisation and supply chain complementarity. On one hand, India has offered preferential market access for 70.3% tariff lines, which account for 90.6% of the overall trade value. On the other hand, Australia has offered 100% tariff line access for Indian imports, and all Indian exports will become eligible for zero-duty access from January 1, 2026. Sectoral gains have now extended to textiles, pharmaceuticals, chemicals, and agricultural products. Imports into India for raw cotton, base metals, chemicals, fertilizers, and pulses will continue to support domestic value addition. The signing of the Mutual Recognition Arrangement on Organic Products in September 2025 has strengthened trust between both countries and improved efficiency in terms of compliance for exports in the organic products sector.

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