New Delhi, Feb 27 (KNN) Exporters from Australia saved approximately USD 2 billion in tariffs by December 2024 due to concessions under the Economic Cooperation and Trade Agreement (ECTA) with India, according to an official statement.
The ECTA, which took effect on December 29, 2022, has significantly reduced trade barriers. Currently, over 85 per cent of Australian goods exported to India are tariff-free, with this figure set to rise to 90 per cent by 2026.
Similarly, 96 per cent of Indian imports to Australia are already tariff-free, with full exemption expected by 2026.
“Our free trade agreement with India has saved Australian businesses hundreds of millions of dollars… the savings are having a direct impact for Australians, reducing costs at the checkout and creating local jobs,” the Australian government stated while launching “A New Road Map for Australia’s Economic Engagement with India” on Wednesday.
Key sectors poised for growth under the trade agreement include clean energy, education and skills, agribusiness, and tourism. The impact of the deal has been evident, with Australian exports to India growing by 35 per cent in the first year, excluding coal.
The agreement has facilitated increased agricultural exports such as cotton, nuts, and various fruits and vegetables.
“This agreement does more than just boost trade; it helps our industries leverage the complementary nature of our trade relationship, giving Australian exporters greater certainty and preparing them for further growth,” the roadmap report noted.
Notably, nearly 200 Australian products entered the Indian market for the first time or were reintroduced, including avocados, fresh salmon, pinewood, and electric motors.
Likewise, Indian businesses have also benefited, with Indian agricultural exports to Australia rising by 15 per cent in 2023, alongside growth in industrial products such as clothing, medicaments, and auto parts.
By 2026, all Indian products entering Australia will be tariff-free, ensuring lower costs for Australian consumers and businesses.
(KNN Bureau)
