Signed in 2022, Agreement played a pivotal role in enhancing trade flows, fostering industry linkages, and creating new opportunities for businesses, entrepreneurs, and employment.
Key Benefits accrued from the ECTA
- India’s Exports to Australia Doubled: From USD 4 billion in FY 2020–21 to USD 8.5 billion in FY 2024–25.
- In FY 2025–26 (up to February), India’s total trade with Australia stood at USD 19.3 billion.
- Preferential Market Access: India granted preferential market access on 70.3% of its tariff lines while Australia granted the same on 100% of its tariff lines, corresponding to 100% of imports from India.
- From 1 January 2026, all Indian exports are eligible for zero-duty market access into Australia.
- Broad Based Sectoral Gains: Notable growth witnessed in exports across textiles, pharmaceuticals, chemicals, and agricultural products.
- Signing of Mutual Recognition Arrangement (MRA) in organic sector: Strengthening Organic Trade.
Significance of Australia for India
- Strategic Alignment towards Indo-Pacific: Both share commitment to transparent, open, secure, inclusive, and rules based order in Indo-Pacific, as seen in:
- Australia is a key partner in Quadrilateral Security Dialogue (QUAD), alongside United States and Japan.
- Australia-India Indo-Pacific Oceans Initiative Partnership (AIIPOIP).
- 2+2 dialogue framework between defence and foreign ministers launched in 2019.
- Defence Engagement: Regular joint naval exercise (AUSINDEX); signed Mutual Logistics Support Agreement in 2021 for closer defence cooperation.
- Energy and Resources: Development of New supply chains under India-Australia Critical Minerals Investment Partnership; cooperation in Renewable Energy including Green Hydrogen, etc.
