Ind-Aus ECTA will increase bilateral trade from $27 bn to $45-50 in 5 yrs: Piyush Goyal

Signing a trade deal with a developed economy after over a decade, India on Sunday signed the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) with Australia. The trade agreement will benefit both countries - Australia with India's finished goods and India with Australia's raw materials.   

Expected to create over one million jobs in the next four to five years, the IndAus ECTA will also be a reference for the FTAs with UK, EU and Canada, with whom the negotiations are in progress, "We expect 1 million jobs creation in India in next 4-5 yrs. A number of new opportunities will open for Indian chefs and Yoga instructors in the time to come. We've also discussed the cooperation of education institutions between India and Australia," Union Minister of Commerce and Industry Piyush Goyal said.

With this deal, the total trade between both countries will double and it will also benefit the labour-oriented sectors. "We're removing trade barriers which will lead to doubling of trade in the future that'll have great potential for labour-oriented sectors. This free trade is expected to take bilateral trade from the existing USD 27 billion to nearly USD 45-50 billion in the next 5 years," the Union Minister stated. Referring specifically to the advantages of the deal for Indian students living in Australia, Goyal said, "We're looking at a work and holiday visa arrangement for promoting tourism. A post-study work visa between 2 and 4 years will be available for Indian students, particularly for STEM (Science, Technology, Engineering, and Mathematics) graduates. We have opened the way for students aspiring to study and work in Australia." 

Prime Minister Narendra Modi also spoke about the benefits of the deal for the student and professional community. He said, ''This agreement will facilitate the exchange of students, professionals, and tourists between us, which will further strengthen these relations.”

India-Australia Bilateral trade 

Having increased exports to Australia by 135% between 2019 and 2021, the bilateral trade between both nations is valued at USD 27.5 billion in 2021. Australia is the 17th largest trading partner of India and India is Australia's ninth largest trading partner. India's exports to Australia is USD 6.9 billion in 2021 and consists mainly of finished products. 

Image: ANI