Leslie Massey
Australia and India have a strong and productive bilateral partnership, with India being Australia's fourth-largest export market. In 2021, Australia exported $19.3 billion worth of goods to India, and the Australia-India Economic Cooperation and Trade Agreement (ECTA) has further improved market access for Australian exporters. ECTA has eliminated tariffs on goods such as sheep meat, wool, hides and skins, barley, oats, and rock lobster, and reduced them for wine, almonds, lentils, and strawberries. India is also Australia's second-largest overseas education destination, and Australian exports in the education, tourism, financial services, and insurance sectors are on the rise.
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What You'll Learn
Seafood, meat, and horticulture
Horticulture contributed a significant $4.2 billion to Australia's agricultural export income in 2021. To improve market access to India, ECTA mandates a phased elimination of tariffs over six years on a variety of horticultural products, including avocados, certain peas and beans, onions, leeks, asparagus, cherries, berries, macadamias, cashews in shells, shelled pistachios, and hazelnuts.
Meat and seafood exports from Australia to India are expected to increase due to the elimination of tariffs on these products under ECTA. This agreement provides a competitive advantage for Australian exporters in the Indian market, which has a growing demand for imported food products, particularly among the emerging middle class.
In addition to the elimination of tariffs on meat and seafood products, ECTA also facilitates trade in other agricultural goods. For instance, high Indian tariffs on certain agricultural products, such as wine, almonds, lentils, and strawberries, will be significantly reduced. Furthermore, Australian exporters can benefit from new rules that streamline documentation requirements and provide faster processing of goods, enhancing their competitiveness in the Indian market.
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Minerals and fuels
Australia and India have a strong and growing trade relationship. In 2024, India was Australia's 9th largest trading partner, and Australia was India's 13th largest trading partner. Bilateral trade between the two countries stood at US$24.1 billion in FY24 and US$25.9 billion in FY23.
Mineral fuels, mineral oils, and products of their distillation; bituminous substances; and mineral waxes are among the major exports from Australia to India. In April-October FY25, these exports were valued at US$4.6 billion.
Australia's exports of mineral fuels and related products to India are significant and have contributed to the increase in bilateral trade in recent years. The demand for these products in India is driven by its rapid industrialization and urbanization, which has resulted in Australia becoming one of India's leading trade partners.
In addition to mineral fuels, Australia also exports coal, copper, and gold to India. These mineral commodities have been key drivers of bilateral trade in the past, with India's demand for these resources contributing to the growth of the trade relationship.
The India-Australia Economic Cooperation and Trade Agreement (ECTA), signed in 2022, has further strengthened the trade relationship between the two countries. ECTA offers duty-free access and reduced tariffs for a wide range of goods, including mineral fuels and other mineral commodities. The agreement is expected to increase bilateral trade significantly, with projections of up to US$45 billion in five years.
The strong trade relationship between Australia and India in the area of minerals and fuels is expected to continue, with India's growing economy and demand for resources playing a key role in the coming years.
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Education, tourism, and financial services
Australia and India have a strong economic relationship, with India being Australia's 9th largest trading partner in FY23 and Australia being India's 13th largest trading partner. Bilateral trade between the two countries is expected to increase from US$27.5 billion to US$45 billion in five years.
Education
International education is a significant contributor to the Australian economy, worth $51 billion, with $30.2 billion paid as goods and services and $20.6 billion paid as tuition fees. While it is unclear how much of this comes from India, Indian students make up a large portion of international students in Australia.
Tourism
Indian travellers have a strong desire to visit Australia, and it is one of the fastest-growing and most promising markets for the Australian tourism industry. Arrivals from India reached a record 434,000 for the year ending in November 2024, a 12% increase over 2023. Indian travellers spent A$2.3 billion on their trips to Australia for the year ending in September 2024, an increase of 8% over the previous year.
Financial Services
Australia's financial services exports have been impacted by the introduction of new digital services, particularly from the 2016-17 financial year onwards, when the imports of these services increased significantly. The inclusion of new digital services estimates has led to revisions in both imports and exports of services, impacting Australia's current account balance.
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ICT capabilities
The Australia-India Economic Cooperation and Trade Agreement (ECTA), signed in 2022, has strengthened the economic ties between the two countries. The agreement has provided Australian businesses with a competitive advantage in India across multiple sectors, including ICT.
India's digital economy is expected to experience significant growth in the coming decade, presenting opportunities for Australian ICT companies. The Australia-India Innovation Network aims to increase the number of Australian technology companies accessing India's rapidly growing digital sector.
Australian ICT companies can leverage their capabilities in various areas to tap into India's burgeoning digital economy. These include:
- Software Development and Programming: Australia has a robust software development industry, with expertise in creating innovative solutions for various sectors such as finance, healthcare, and education. Australian companies can offer their software development services to Indian businesses looking to digitize their operations.
- Cloud Computing and Data Centres: Australia has a strong track record in cloud computing and data centre management. With India's increasing focus on digital transformation, Australian companies can provide cloud infrastructure, data storage, and management solutions to Indian businesses.
- Cybersecurity: As India's digital economy expands, the demand for cybersecurity solutions will increase. Australian companies with expertise in cybersecurity can offer their services to help Indian organizations protect their critical data and infrastructure.
- Artificial Intelligence and Machine Learning: Australia has a thriving AI and machine learning ecosystem. Australian companies can collaborate with Indian businesses to develop AI-powered solutions in areas such as natural language processing, computer vision, and predictive analytics.
- Digital Skills Development: Australia is known for its high-quality education system. Australian education providers can offer digital skills training and capacity-building programs to Indian professionals, helping to bridge the skill gap in India's growing digital sector.
By leveraging their ICT capabilities and taking advantage of the favourable trade agreements between the two countries, Australian businesses can play a significant role in India's digital transformation journey.
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Gems, pearls, and wine
India and Australia have a strong economic partnership, with bilateral trade valued at US$24.1 billion in FY24 and US$25.9 billion in FY23. India exported US$7.94 billion worth of goods to Australia in FY24, and Australia imported goods worth US$16.15 billion in the same year.
One of the commodities that Australia purchases from India is gems. India is one of the top three gem exporters in the world, exporting to over 197 countries, including Australia. There are 119 gem suppliers based in India exporting to Australia, and 160 importers in Australia buying from India. The gem industry in India consists of 119 manufacturers and exporters. From March 2023 to February 2024, India exported 55 shipments of gems to Australia, a growth rate of -11% compared to the previous year.
Australia also imports pearls from India. India is the world's leading exporter of pearls, exporting to 223 countries worldwide. India exported 53,695 shipments of pearls from March 2023 to February 2024, with a growth rate of 60% compared to the previous year.
In addition to gems and pearls, Australia also sources wine from India. The two countries signed the Economic Cooperation and Trade Agreement (IndAus ECTA) in April 2022, which provides duty-free access to goods and facilitates trade between the two nations. This agreement is expected to boost bilateral trade significantly over the next five years.
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Frequently asked questions
Australia's major exports to India include coal, copper, gold, copper ore, wool, horticulture, sheep meat, hides and skins, barley, oats, fresh rock lobster, LNG, critical minerals, alumina, manganese, zirconium, titanium dioxide, cosmetics, railway equipment, wine, almonds, lentils, strawberries, oranges, mandarins, pears, avocados, peas, beans, onions, leeks, asparagus, cherries, berries, macadamias, cashews, and cotton.
The Australia-India Economic Cooperation and Trade Agreement (ECTA) gives Australian goods exporters access to India's large market of nearly one and a half billion people. ECTA supports goods exporters by eliminating and reducing tariffs and removing red tape that slows trade down.
Tariffs on Australian wine exports to India were 150% as of 2022. The ECTA agreement will see this tariff cut to 50% over 9 years for bottles valued over $5 and 25% over 9 years for bottles valued over $15.
In 2021, Australia exported $19.3 billion worth of goods to India, representing 4.2% of Australia's total exports. This makes India Australia's fourth-biggest export market and fifth-largest export market.
