There has been a substantial rise in Indian exports to Australia under the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), as evident from the 8% growth in Indian exports in FY25 compared to earlier. This has contributed significantly to a better trade balance between India and Australia due to better access and stronger supply chain routes facilitated under this trade agreement, which was realized three years ago. A historic shift will witness 100% tariff lines in Australia automating to zero duty in Indian exports to Australia, enabling Indian goods to freely enter Australia without any tariffs whatsoever in hand, thus opening a fresh avenue for Indian exporters in all sectors that have a large workforce in them. All sectors, like manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems & jewellery, have benefited from Indian exports; there has been a substantial 16% increase in jewellery alone among Indian exports in this sector. Agricultural products like fruits, vegetables, seafood, spices, and coffee have penetrated better in Australia.
Union Minister of Commerce and Industry Mr. Piyush Goyal reiterated the significance of the trade deal, stating, “It has now resulted in delivery on the ground performance outcomes for exporters, MSMEs, farmers, and workers. The deal is a translation of intent to deliver on the ground”. A Mutual Recognition Arrangement (MRA) for Organic Products was another milestone where the two nations signed the deal, paving the way for more simplified trade. Going forward on the lines of a Comprehensive Economic Cooperation Agreement (CECA), the India-Australia Economic Cooperation and Trade Agreement is a critical support structure for India’s engagement with the Indo-Pacific, in the context of Make in India and the vision for Viksit Bharat 2047.
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