The India-Australia Economic Cooperation and Trade Agreement (ECTA) was one of the best deals for India and within six years, Indian exports to his country would be tariff and quota-free, former Australian prime minister Tony Abbott said in New Delhi on March 2.
“It's the best trade deal that India has done with any major economy. About 90 percent of Australia's exports to India are to be tariff and quota-free. Within six years, 100 percent of India's exports to Australia will be tariff and quota-free,” Abbott said during an interaction organised by the India-Australia Strategic Alliance.
India’s imports from Australia amount to $17 billion, while exports are worth $10.5 billion, the ministry of commerce & industry said in a statement in January.
The agreement, which came into effect on December 29, 2022, would benefit various labour-intensive Indian sectors currently subjected to a 5 percent import duty by Australia.
“The agreement will result in immediate market access at zero duty to 98.3 percent of tariff lines, accounting for 96.4 percent of India’s exports to Australia in value terms. The remaining 1.7 percent lines are to be made zero-duty lines over five years. Overall, Australia is offering duty elimination on 100 percent of its tariff lines,” the ministry’s statement has said.
The ministry expects the total bilateral trade to cross $ 45-50 billion by 2035.
“I have hailed the emergence of India, as the world's second democratic superpower. I believe that just as the 19th century was a British century and the 20th century an American one, I think the 21st century could easily be an Indian one,” he said.
“India is on the threshold of the economic cycle that China was on a couple of decades ago.”
Abbott said India could substitute China as far as Australia’s supply chains were concerned. “I often say that for nearly every question about China, the answer is India. And I certainly think that over time, there is a great opportunity for India to substitute for China in the democracy’s critical supply chains,” the Australian leader said.
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