Leslie Massey
India is Australia's seventh-largest trading partner, and the two countries have a long history of cooperation. In recent years, trade relations have improved, and trade has reached about 20 billion Australian dollars. Australia's major imports from India include refined petroleum, pearls and gems, and medicaments. India is also one of the biggest exporters of agricultural products to Australia, with Indian agricultural products in high demand in the Australian market. In addition, Australia imports textiles, clothing, and precious metals from India.
| Characteristics | Values |
|---|---|
| Agricultural products | Rice, bread and pastry, coffee, tea |
| Pharmaceuticals | USD 316 million in 2021-22 |
| Trade value | AUD 4.363 billion presently |
| Trade relationship | Growing |
| Trade infrastructure | Improved |
| Imports from India | Refined petroleum, pearls and gems, medicaments, textiles, precious metals and stones, vehicles and parts |
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What You'll Learn
Agricultural products
India and Australia have a shared vision for a resilient, inclusive, open Indo-Pacific region. In FY23, 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.
India has been one of the world's fastest-growing economies over the past two decades, and this growth is expected to underpin large increases in agrifood consumption in the future. By 2050, import demand for vegetables, fruit, and dairy products is projected to increase significantly.
Australia's agricultural exports to India have increased by 50% since the Australia-India Economic Cooperation and Trade Agreement (IndAus ECTA) came into force on 29 December 2022. This agreement has eliminated tariffs on over 90% of Australia's goods exports to India by value, with tariffs on over 85% of exports eliminated on 29 December 2022. The agreement has also substantially reduced tariffs on key agricultural products such as:
- Wine
- Almonds
- Lentils
- Strawberries
- Sheep meat
- Seafood
- Broad beans
- Citrus
Other agricultural products that Australia exports to India include:
- Infant formula
- Peas and beans
- Nuts
- Avocados
- Onions
- Cherries
- Blueberries
- Raspberries
- Blackberries
- Oil seeds and oils
- Food preparation items
- Pasta
- Breakfast cereals
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Fabrics and textiles
India is Australia's seventh-largest trading partner, and the two countries have a positive and growing trade relationship. In recent years, trade relations between the two countries have improved, and barriers have been reduced. Australia and India have complementary economies, with Australia demanding diverse products from India, ranging from agricultural items to advanced technological solutions.
Indian fabrics are preferred in Australia, and entrepreneurs can capitalize on this demand by manufacturing and exporting fabric and garment designs to the Australian market. Understanding the market and starting on a modest scale can help exporters capture the market and grow their businesses.
India is also a major supplier of precious stones and gems, which are in high demand in Australia due to the integral role of jewelry in Indian culture. This includes unique or rare stones, diamonds, and gold and silver jewelry designs.
Exporting fabrics and textiles from India to Australia can be challenging due to complex regulatory environments, import-export regulations, heavy documentation, and tariffs. These complexities can increase costs and cause unexpected delays, so staying updated with changing political environments and leveraging bilateral trade agreements can help overcome these obstacles.
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Precious metals and stones
Australia and India have a strong and growing trade relationship, with India being Australia's seventh-largest trading partner and fifth-largest export market. Australia imports a wide range of goods from India, including agricultural products, textiles, and precious metals and stones.
India's exports of precious metals and stones to Australia include a variety of items. Gold jewellery, for instance, is one of the most popular exports from India to Australia. India's skilled artisans craft exquisite gold jewellery designs that appeal to Australian consumers. Similarly, silver jewellery from India is also in high demand in Australia. The intricate and unique designs of Indian silver jewellery stand out in the Australian market.
In addition to jewellery, India also exports a variety of precious and semi-precious stones to Australia. These stones include diamonds, as well as other rare and unique gems. The demand for these stones in Australia is driven by their use in jewellery-making and the desire for distinctive and valuable gemstones. India's vast gemstone resources make it a reliable source for these precious stones.
The import of precious metals and stones from India not only meets the demands of the Australian market but also contributes to the cultural exchange between the two countries. Jewellery holds a special place in Indian culture, and by importing these items, Australia gains a piece of Indian heritage and craftsmanship. The trade in precious metals and stones is, therefore, a meaningful aspect of the economic relationship between India and Australia, fostering cultural appreciation and understanding.
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Pharmaceuticals
Australia imports pharmaceutical products from India. In 2021-22, India accounted for 1.63% of outbound Indian pharmaceutical shipments, with exports to Australia totalling USD 316 million. India is the leading exporter of pharmaceuticals to Australia, comprising 87% of the total with 1,347 shipments. This is a large proportion of Australia's pharmaceutical imports, which come from 190 countries globally.
India's dominance in this area is due to its production of high-quality and affordable pharmaceutical goods. Healthcare providers and consumers in Australia rely on these products. India's trade infrastructure has improved in recent years, supporting import and export activities, and making trade more cost-effective and efficient.
However, there are challenges to exporting pharmaceuticals from India to Australia. The regulatory environment is complex, with import-export regulations, heavy documentation, and quality control requirements. Tariffs and non-tariff barriers, such as quarantine requirements, can also increase costs and cause delays. To export pharmaceuticals to Australia, they must be entered in the Australian Register of Therapeutic Goods (ARTG) unless they are exempt. Controlled substances, such as narcotics, psychotropic and precursor substances, require a licence and/or permit from the Office of Drug Control.
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Machinery
Australia's automotive industry heavily relies on imported vehicles and components, with automotive parts being among the top imports in this category. This includes parts and accessories for nuclear reactors, boilers, machinery, and mechanical appliances. India is one of the countries that export these parts to Australia.
In addition, Australia imports machinery to support its energy sector. Although Australia is a significant producer of coal and natural gas, it still imports energy products such as crude oil, petroleum products, and natural gas to meet domestic energy needs and fuel industrial activities.
When importing machinery, Australia requires it to be free from contamination such as seeds, soil, plant, and animal materials. The Department of Agriculture, Fisheries and Forestry has the authority to export contaminated machinery at the importer's or owner's expense.
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Frequently asked questions
Australia's major imports from India include refined petroleum, pearls, gems, and medicaments. In 2021-22, Australia imported AU$577 million worth of agricultural products from India, including rice, bread, pastry, coffee, and tea. India is also a major exporter of textiles and clothing to Australia.
India is Australia's seventh-largest trading partner and its fifth-largest export market. The complementary nature of the two countries' economies has resulted in increased demand for Indian products in Australia, ranging from agricultural goods to advanced technological solutions.
Trade between India and Australia has grown significantly in recent years, reaching approximately 20 billion Australian dollars. In 2000-2001, exports from India to Australia were around 400 million dollars, compared to 4.363 billion Australian dollars presently.
