Trade agreements with Australia and UAE to help boost exports

Trade agreements signed by India with the UAE and Australia, have been praised by several export promotion councils (EPCs), who said that these agreements will help India in boosting its exports by granting preferential access to those markets for Indian products.

India has benefitted from UAE’s preferential market access on over 97% of its tariff lines, which accounts for 99% of Indian exports to the country in value terms, Engineering Exports Promotion Council (EEPC) said.

Mr. B.B. Agarwal, Eastern Regional Chairman, EEPC said that this was seen after the India-UAE Comprehensive Economic Partnership Agreement (CEPA) came into effect on May 1, 2022. Whereas, the India-Australia Economic Cooperation and Trade Agreement (ECTA), which is to come into effect from today, that is, December 29, 2022, is expected to create 10 lakh job opportunities and increase Indian merchandise exports to Australia by US$ 10 billion. He further added, ECTA will allow zero duty on 100% tariff lines and provide cheaper raw materials to the steel and aluminium sectors.

According to Mr. Bipin Menon, Development Commissioner, Noida Special Economic Zone (SEZ), India is Australia’s sixth largest trading partner. India’s bilateral trade in goods and services with Australia saw a 106.5% increase to US$ 25.04 billion in FY2022-23. Additionally, he said, CEPA with the UAE is also expected to increase the total value of bilateral trade in goods to over US$ 100 billion and in services to over US$ 15 billion within the next five years.

Other industry experts also stressed on the fact that ECTA will open a new chapter in the India-Australia association, which would thereby, help in enhancing India’s merchandised exports, and would also help in increasing India’s gem and jewellery exports to Australia. Mr. Lalit Agarwal, Regional Chairman of the Plastics Export Promotion Council (PLEXCOUNCIL), stated that India’s export potential of plastics stands at US$ 5 billion to the UAE, and for Australia, it is US$ 6 billion. The import duty under CEPA has been reduced to 0% from 5% and Australia has also reduced all tariff lines for plastic products.

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