Economic Cooperation and Trade Agreement (ECTA) signed between India and Australia

The Union Minister of Commerce & Industry, Food and Public Distribution and Textiles, Shri Piyush Goyal and the Minister of Trade, Tourism and Investment of Australia, Mr. Dan Tehan, MP held a virtual meeting in the presence of the Prime Minister, Shri Narendra Modi and the Prime Minister of Australia, Mr. Scott Morrison. The India-Australia Economic Cooperation and Trade Agreement was signed at the ceremony.This newly signed agreement will help to take the bilateral trade between both countries to USD 45-50 billion from USD 27 billion in the next five years.

Key features of this agreement

• For 96.4 percent of exports, zero-duty access to India is being offered by Australia from day one.
• This will be covering many products that in Australia at present attract 4 to 5 percent customs duty.
• Various labour-intensive sectors that will be gaining immensely due to this agreement include apparel, textiles, a few fish and agricultural products, footwear, leather, sports goods, furniture, machinery, jewellery, railway wagons, and electrical goods.

India’s trade with Australia

• India is the 9th largest trading partner of Australia, while for India, Australia takes the 17th rank among the trading partners. In 2021, the Bilateral trade between both countries in services and goods amounted to USD 27.5 billion.