The Economic Cooperation and Trade Agreement (ECTA) betwen Australia and India is anticipated to be introduced in the Parliament soon, according to Union Minister for Commerce and Industry Piyush Goyal. The Commerce and Industry minister also announced that his Australian counterpart Dan Tehan will visit India later this month.
The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) was formally signed on April 2, 2022, by Piyush Goyal and Dan Tehan in attendance of Prime Minister Narendra Modi and former Australian Prime Minister Scott Morrison via video conference.
On being asked about trade and economic cooperation with Australia, Goyal said, "Dan Tehan will be in India later this month and we have had discussions. But he has already assured me when he met me at the WTO meetings that they are very pleased with the outcome of the Australian negotiations and the free trade agreement, the ECTA Agreement and that they will be putting it into Parliament soon. I am told that the tentative timelines are the end of this year."
96% of India's exports to Australia are expected to be duty-free under the Australia-India Economic Cooperation and Trade Agreement (ECTA) including shipments from important industries including engineering products, gems and jewellery, textiles, clothing, and leather. According to a government estimate, the agreement will increase bilateral commerce in products and services from about USD 27 billion to USD 45-50 billion over the course of five years and create more than one million jobs in India.
In addition, the agreement will grant zero-duty access to the Indian market for around 85% of Australian exports, including coal, sheep meat and wool, as well as reduced-duty access for Australian wines, almonds, lentils, and some fruits. According to the deal, zero-duty access for Indian goods will increase to 100% over a five-year period.
India and Australia have strong bilateral ties that have experienced dramatic evolution in recent years, progressing along a favourable track towards a cordial alliance. This special cooperation is defined by common principles of a pluralistic, parliamentary democracy, Commonwealth traditions, growing economic participation, long-standing people-to-people ties, and rising high-level interaction.
During the India-Australia Leaders' Virtual Summit, the Comprehensive Strategic Partnership between India and Australia was established. A fast broadening and strengthening bilateral relationship between India and Australia is strengthened and stabilised by expanding economic and commercial ties between the two nations.