New Delhi, April 2 (IANS). On completion of four years of India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), it has become clear that this agreement has played an important role in increasing India’s exports and strengthening trade between the two countries.
This agreement was signed on 2 April 2022 and over the last four years it has created new opportunities for businesses, entrepreneurs and employment in both the countries.
India’s exports to Australia have more than doubled from $4 billion in FY 2020-21 to $8.5 billion in FY 2024-25.
At the same time, the total trade between the two countries in 2024-25 stood at $ 24.1 billion, while India’s exports registered an increase of 8 percent compared to last year. According to data released by the Commerce Ministry, India’s total trade with Australia in the financial year 2025-26 (till February) stood at $ 19.3 billion.
Under the India-Australia ECTA, India is granted preferential market access on 70.3 per cent of its tariff lines, covering 90.6 per cent of total trade value. Whereas Australia has provided priority market access to 100 percent imports from India.
Of these, 98.3 percent of tariff lines were made duty-free as soon as they came into force, while the remaining 1.7 percent (113 tariff lines) are being phased out over five years. From January 1, 2026, all exports from India become eligible for zero-duty entry into Australia.
Benefits have also been seen in different sectors under ECTA; Especially there has been a good increase in the export of textile, pharmaceutical, chemical and agricultural products. In terms of imports, this agreement gives India easy access to essential raw materials like base metals, raw cotton, chemicals, fertilizers and pulses, which are very important for the manufacturing and industrial sector of the country. Such complementary trade structures strengthen supply chains and boost domestic production.
Another major step in the cooperation between the two countries came in the form of Mutual Recognition Arrangement (MRA) on organic products signed on 24 September 2025. This agreement recognizes the certification systems of both countries, thereby reducing costs, time and duplication of processes in the trade of organic products. This has also increased transparency and trust in the organic sector.
The statement further said that this trade agreement has emerged as a strong foundation of relations between India and Australia, directly benefiting businesses, MSMEs, workers and consumers.
–IANS
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