India and Australia ink free trade deal

The deal will open fresh opportunities for students, professionals, and tourists of both countries: PM Modi

April 6, 2022

The deal will allow both countries to harness the existing potential, increase the supply chain resilience, and contribute to the stability of the Indo-Pacific region

The conclusion of the Economic Cooperation and Trade Agreement (ECTA) in a short period exemplifies the level of confidence between the countries

ECTA would create opportunities for trade diversification for domestic producers and service providers bound for India: Scott Morrison

India and Australia signed a comprehensive interim free-trade agreement last week, which will provide zero-duty exports to 100% tariff lines from India to the Australian market

India and Australia signed a comprehensive interim free-trade agreement last week that will provide zero-duty exports to 100% tariff lines from India to the Australian market, thus aiding labour-intensive sectors and providing greater access to the services space. The Australian government has stated that the deal will remove tariffs on more than 85% of Australian goods exports to India, rising to almost 91% over the next decade. After the agreement is operationalised, 97% of Indian goods will immediately gain preferential access to Australia and the remainder will happen over the next five years.

Calling the trade deal between India and Australia a “watershed moment”, Prime Minister Narendra Modi said that the free trade agreement will open fresh opportunities for students, professionals, and tourists of both countries and enable both sides to harness existing potential better, increase the resilience of supply chains, and contribute to the stability of the Indo-Pacific region.

PM Modi said the conclusion of the ECTA in a short period exemplifies the level of confidence between the countries. The Australian Prime Minister, Scott Morrison stated that the ECTA would create opportunities for trade diversification for domestic producers and service providers bound for India, which are valued at approximately US$ 14.8 billion.

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