Australian corporations and consumers can now take gain of recent trade opportunities provided by using the Australia-India Economic Cooperation and Trading Agreement (ECTA), which entered into pressure on 29 December 2022. It allows for the competitive elimination or reduction of tariffs on a wide range of key Australian exports and opens up new service markets for suppliers in industries. More than 85% of Australian goods exported by value to India are now duty-free, rising to 90% in the next six years, and high tariffs have been reduced on some other products. In addition, 96% of India's industrial imports are now duty-free and will rise to 100% in four years. Under ECTA, Australia will issue Tariff Rate Quota (TRQ) certificates to exporters or manufacturers and share them with Indian customs authorities. India or Australia can do so by changing their tariff obligation schedule or by applying Most-Favored Nation (MFN) lower tariff rates than the ECTA tariff rate. Department of Foreign Affairs and Trade (DFAT) qualitative assessment is that there would be a net benefit for Australia to sign the proposed Australia-India ECTA. This is due to the likelihood of increased business activity and confidence, and a greater range of goods at competitive prices imported from India. The IT sector will be a big gainer as it contributes significantly to both economies, Better job opportunities for Indian students studying in Australia, Less expensive uncooked materials from Australia will make Indian goods more competitive within the international marketplace. In 2021–22, exports of goods from India to Australia were $8.3 billion and imports were about $16.7 billion. Two-way trade in goods and services was valued at $24.3 billion in 2020. The ECTA agreement between India and Australia is expected to increase bilateral trade to around $45-50 billion over the next five years from the existing $31 billion. India hopes to grow its merchandise exports via $10 billion by way of 2026-27. Thank you.
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