November 23, 2023
This significant surge in trade is a direct result of the substantial evolution in trade relations between India and Australia over the past decade
Last year, in April, India and Australia formalised their Economic Cooperation and Trade Agreement (ECTA)
Approximately 96% of India's imports from Australia consist of raw materials and intermediate goods, such as coal
India's exports to Australia predominantly comprise finished products, especially consumer goods
The trade between India and Australia experienced remarkable growth, reaching US$ 27.8 billion from a modest US$ 15.6 million a decade ago, according to a study conducted by India Exim Bank released on Tuesday.
This significant surge in trade is a direct result of the substantial evolution in trade relations between India and Australia over the past decade. Last year, in April, India and Australia formalised their Economic Cooperation and Trade Agreement (ECTA), which came into force on December 29, 2022, after ratification and the exchange of written instruments.
The study highlighted that approximately 96% of India’s imports from Australia consist of raw materials and intermediate goods, such as coal, with around 74% of coking coal being imported from Australia. Conversely, India’s exports to Australia predominantly comprise finished products, especially consumer goods.
India Exim Bank’s study suggested that elevating the ECTA to a Comprehensive Economic Cooperation Agreement (CECA) could further capitalise on the potential for closer economic ties between the two nations. The study identified various potential areas for cooperation under the CECA, including support for small and medium enterprises, promotion of digital trade, trading in geographical indication certified goods, settlement of trade payments in local currencies, strategic alliances for sourcing critical minerals, government procurement, agri-technology partnerships, and collaboration in renewable energy.
Source: Mint