India looks to increase trade with Australia to $45-50 billion in 5 years as FTA passed Down Under

Representative image: Reuters

India is looking to increase its trade with Australia to $45-50 billion annually from $31 billion at present in five years, with the newly-agreed India-Australia Economic Cooperation & Trade Agreement expected to provide a significant boost.

The agreement, passed by Australia's Parliament on November 22, will enter into force 30 days after domestic requirements have been met and confirmed, the Australian government said in a statement.

Minister for Trade and Tourism Don Farrell said Australia is ready to implement the deal and will work to implement it "as soon as possible".

"Delighted that India-Australia Economic Cooperation & Trade Agreement has been passed by Australian Parliament. A result of our deep friendship, it sets the stage for us to unleash the full potential of our trade ties & spur massive economic growth," Commerce Minister Piyush Goyal tweeted earlier today.

Speaking to reporters in the Capital following the passage of the agreement, Goyal said it will now go to Australia's Executive Council for approval, while India will seek the President's assent for the same.

It is likely that the agreement will be launched in January during the Joint Ministerial Commission meeting.

According to the commerce ministry, India's merchandise exports to Australia may increase by $10 billion by 2026-27, with the trade pact expected to create around 10 lakh additional jobs in India.

While the agreement will allow Indian producers to source cheap raw materials from Australia, Goyal told reporters India's services trade will also get a shot in the arm. Further, visa arrangements have been agreed upon for yoga teachers and chefs with an annual cap of 1,800. In addition, a post-study work visa of up to four years could benefit more than 100,000 Indian students, Goyal said.

Speaking at an event earlier today, Goyal called on the steel industry to take advantage of the trade agreement "and look at capturing new opportunities" as all of India's steel exports to Australia would become duty-free once the pact comes into effect.