India's exports will considerably gain from the India-Australia trade agreement: FIEO
- IBEF
- January 2, 2023
The Federation of Indian Export Organizations (FIEO) said that the India-Australia trade agreement (India-Australia Economic Cooperation Trade Agreement) will benefit Indian exports from preferential duty market access in Australia and will benefit India's labour-intensive sectors, including gems and jewellery, textiles, leather, footwear, furniture, food and agricultural products, engineering products, medical devices, automobiles, and specific pharma products.
It further stated that it is impressive that India has forged two significant partnerships with the complementary economies and significant export markets of Australia and the United Arab Emirates in such a short period of time. The export of commodities from India to Australia will increase from US$ 6.9 billion in 2021 to US$ 15 billion by 2025, while the export of services is expected to increase from US$ 3.9 billion to US$ 10 billion by the same year.
Additionally, India has granted Australia market access in around 103 subsectors and Most Favoured Nation status in 31 subsectors from the 11 general service sectors, including business services, communication services, construction, and allied engineering services.
Moreover, as part of this agreement, the two nations consented to a separate annex on pharmaceutical products, which will allow for the fast-track approval of proprietary, generic, and biosimilar medications. According to estimates, this trade pact would help India add another 10-lakh employment.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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