India-Australia Economic Cooperation and Trade Agreement
An economic cooperation and trade agreement has been signed between India and Australia. Under this agreement, Australia will be providing duty-free access for over 95 percent of Indian goods like leather, textiles, sports products, and jewellery in its market.
- Australian Minister for Trade, Tourism and Investment Dan Tehan and Piyush Goyal, Commerce and Industry Minister inked the India-Australia Economic Cooperation and Trade Agreement via a virtual ceremony.
- Indian Prime Minister Narendra Modi and Australian Prime Minister Scott Morrison were also present during the signing of this agreement.
- 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.