India-Australia Trade Agreement Marks Two Years of Success

GG News Bureau
New Delhi, 30th Dec. The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has successfully completed two years, marking a significant milestone in the bilateral relationship between the two nations.

The agreement has played a pivotal role in enhancing trade ties, unlocking new opportunities for businesses, MSMEs, and employment, while fortifying the economic partnership between India and Australia.

As the agreement enters its third year, the Government of India is committed to sustaining the momentum and fostering continued collaboration, in line with Prime Minister Narendra Modi’s vision of transforming India into a developed nation by 2047.

Since its signing, bilateral merchandise trade has more than doubled, increasing from USD 12.2 billion in 2020-21 to USD 26 billion in 2022-23. While total trade moderated to USD 24 billion in 2023-24, India’s exports to Australia grew by 14%. The current fiscal year has continued to exhibit robust growth, with total merchandise bilateral trade reaching USD 16.3 billion from April-November 2024.

The successful implementation of the agreement is further highlighted by the commencement of preferential import data exchange between the two nations in 2023, with export utilization standing at 79% and import utilization at 84%.

Key sectors such as textiles, chemicals, and agriculture have witnessed significant growth, while new export categories, including gold-studded diamonds and turbojets, underscore the diversification facilitated by the agreement. Meanwhile, imports of vital raw materials like metalliferous ores, cotton, and wood products have supported India’s industries, reinforcing the mutually beneficial nature of the partnership. Additionally, sectors such as electronics and engineering present further opportunities for expansion.

Building on the achievements of the ECTA, the India-Australia Comprehensive Economic Cooperation Agreement (CECA) is currently under negotiation, with 10 formal rounds and several inter-sessional discussions completed. A recent stocktake visit to New Delhi from 4th to 6th December 2024 assessed the progress of CECA and set the course for future developments.

Both nations are determined to leverage the success of the ECTA and deepen economic integration, aiming for a target of AUD 100 billion in trade by 2030. With strong foundations in place, India and Australia are poised to elevate their economic partnership to new heights, driving mutual prosperity and contributing to a more resilient global economy.