The development follows Commerce and Industry Minister Piyush Goyal’s visit to Australia last month
The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) came into effect in December 2022. Now, both sides are negotiating to broaden the scope of ECTA through a comprehensive economic cooperation agreement (CECA).
The countries have already achieved broad consensus on trade of goods especially on the prickly issues of whiskey and automobiles. As many as 19 chapters of the total 26 have also been closed.
India’s imports from Australia amount to $17 billion, while its exports to Australia are worth around $10.5 billion, ministry of commerce and industry has said
Under the pact, Australia is offering zero-duty access to India for about 96.4 per cent of exports (by value) from the Day 1. This covers many products that currently attract 4-5 per cent customs duty in Australia.
FICCI Director General Arun Chawla said this agreement will open doors to opportunities across diverse areas like mining and minerals, pharmaceuticals, healthcare, education, clean energy, transportation, gems and jewellery, tourism and textiles, generating about a million jobs in India.
India has also taken up with Australia the delay in processing visas for students heading to Australia for higher studies
On April 2, India and Australia signed the Economic Cooperation and Trade Agreement (IndAus ECTA) under which both the countries are providing duty free access to a huge number of goods and relaxing norms to promote trade in services.
Under the agreement, Australia will also provide duty-free access to over 95 percent of Indian goods such as textiles, leather, jewellery, and sports products.
New Delhi can leverage the economic pact with Canberra to consolidate its geopolitical interest in the Asia-Pacific region
A push by India and Australia to bring their supply chains closer, bypassing China, may formally become a part of the proposed fast-track trade deal being negotiated.