Economic Cooperation and Trade Agreement signed by India-Australia

Sakshi Education

India and Australia signed an Economic Cooperation and Trade Agreement (IndAus ECTA), hailing it as a watershed moment and one of the biggest economic doors there is to open in the world. It will provide zero-duty access to 96 per cent of India’s exports to Australia, including shipments from key sectors like engineering goods, gems and jewellery, textiles, apparel, and leather.
According to a government estimate, the agreement will increase bilateral trade in products and services to $45-50 billion over the next five years, up from roughly $27 billion, and create over one million employees in India.
Around 85% of Australia’s exports, including coal, sheep meat, and wool, will have zero duty access to the Indian market, while Australian wines, almonds, lentils, and select fruits would have lower duty access.
Under the deal, zero-duty access for Indian goods will be expanded to 100% over the next five years.
It is India’s first Free Trade Agreement (FTA) with a large developed country in more than a decade. India inked an FTA with the UAE in February and is actively negotiating FTAs with Israel, Canada, the United Kingdom, and the European Union.

Published date : 05 Apr 2022 07:30PM