December 30, 2024
Bilateral merchandise trade has doubled to US$26 billion in FY23, compared to US$12.2 billion in FY21
The April-November 2024 period recorded US$16.3 billion in merchandise trade, reflecting sustained momentum
The agreement expanded opportunities for MSMEs, farmers, and Indian exporters while creating significant employment
Export utilisation stood at 79% and import utilisation at 84%, highlighting the effective implementation of ECTA
India’s exports to Australia have risen by 14% since the signing of the India-Australia Economic Cooperation and Trade Agreement (ECTA), with significant textiles, chemicals, and agriculture growth. According to the commerce ministry, new export categories, including diamond-studded gold jewellery and turbojets, underline the diversification achieved under the landmark agreement.
While total trade in FY24 moderated to US$24 billion, bilateral merchandise trade surged to US$26 billion in FY23, doubling from US$12.2 billion in FY21. Strong trade momentum continued into the current fiscal year, with total bilateral trade reaching US$16.3 billion between April and November 2024.
Commerce and Industry Minister Piyush Goyal highlighted that ECTA has unlocked increased market access for Indian exporters, benefiting MSMEs and farmers while creating numerous employment opportunities. Goyal emphasised the partnership’s transformative impact on IT/ITeS, business, travel services, and work-related visas, reaffirming India’s commitment to achieving the AUD 100 billion trade target by 2030.
The exchange of preferential import data between the two nations began in 2023, demonstrating the agreement’s effective implementation. The data revealed export utilisation at 79% and import utilisation at 84%. Imports of essential raw materials, such as metalliferous ores, cotton, and wood, have supported India’s industries, creating a mutually beneficial trade relationship.
The ministry noted that sectors like electronics and engineering have room for further growth under ECTA. The agreement continues to shape a robust and resilient trade future between India and Australia, with both nations working collaboratively to achieve ambitious economic goals.
Source: Economic Times