Damon Mcknight
Australia and India have a strong bilateral relationship, with both countries committed to working together on security issues and promoting a free, open, prosperous, and rules-based Indo-Pacific region. This is reflected in their economic cooperation and trade agreements, with Australia and India providing duty-free access to a vast number of goods and services. The two countries have set a goal of increasing bilateral trade to US$45 billion in five years, with India aiming to export 5,124 commodities to Australia. Major exports to Australia include petroleum products, engineering goods, textiles, and pharmaceuticals, while Australia exports coal, coke, and briquettes to India.
Explore related products
What You'll Learn
The Economic Cooperation and Trade Agreement (ECTA)
Under the ECTA, both Australia and India have committed to providing duty-free access to a vast number of goods and relaxing norms to promote trade in services. This agreement is expected to increase bilateral trade significantly, with projections of up to US$45 billion in the next five years. This is a substantial increase from the US$24.1 billion in bilateral trade during FY24 and US$25.9 billion in FY23.
The ECTA offers several advantages for Australian businesses, including tariff reductions and improved access to India's fast-growing market of over 1.4 billion people. It provides opportunities for trade diversification and gives Australian businesses a competitive edge in expanding their presence in India. Over 85% of Australian goods exports by value to India are now tariff-free, with a further increase to 90% by January 1, 2026. Additionally, high tariffs on certain agricultural products have been reduced.
For India, the ECTA is equally beneficial. 96% of imports from India are now tariff-free, rising to 100% by January 1, 2026. India's exports to Australia include a diverse range of commodities, such as petroleum products, engineering goods, pharmaceuticals, textiles, and gems and jewellery. The ECTA will enhance India's export capabilities and strengthen its economic ties with Australia.
The ECTA also sets the stage for further negotiations towards a Comprehensive Economic Cooperation Agreement (CECA) between the two countries. This upcoming agreement aims to build upon the successes of the ECTA and foster even closer economic relations between Australia and India.
The Purge: Australia's Rating and Its Impact
You may want to see also
Explore related products
$3.99 $30
Bilateral trade in FY24 stood at $24.1 billion
The bilateral trade between India and Australia for the fiscal year 2024 stood at $24.1 billion, with India's exports to Australia growing by 14%. This is a slight decrease from the $25.9 billion in bilateral trade in FY23. India's exports to Australia in FY24 were worth $7.94 billion, while imports aggregated to $16.15 billion.
India exported 5,124 commodities to Australia in FY24, with major exports including mineral fuels, mineral oils, and products of their distillation; bituminous substances; and mineral waxes ($2.50 billion). Other significant exports included natural and precious pearls ($203.39 billion), pharmaceutical products ($248.14 million), and petroleum products ($3.81 billion). India's exports of textiles, chemicals, and agricultural goods have also shown substantial growth.
On the other hand, Australia's major imports to India include essential raw materials such as metalliferous ores, cotton, wood, and wood products. Australia's exports to India have fuelled Indian industries, contributing to the mutually beneficial nature of the trade partnership.
The Australia-India Economic Cooperation and Trade Agreement (ECTA), which entered into force on December 29, 2022, has played a significant role in enhancing trade ties between the two countries. The agreement provides duty-free access and relaxed norms to promote trade in services. As a result, over 85% of Australian goods exports to India are now tariff-free, with a target of reaching 90% by January 1, 2026. Similarly, 96% of imports from India are tariff-free, with plans to reach 100% by the same date.
The two countries have set ambitious targets for bilateral trade, aiming to increase it from the existing $27.5 billion to $45 billion in five years and $100 billion in the next decade. The strong trade relationship between India and Australia reflects their shared vision for a resilient, inclusive, and open Indo-Pacific region.
Lyca-to-Lyca Calls: Are They Free in Australia?
You may want to see also
Explore related products
India's exports to Australia
India and Australia have been Indo-Pacific partners for many years, with a shared vision for an open, inclusive, and resilient region. In FY23, India was Australia's 9th largest trading partner, while Australia was India's 13th. Bilateral trade between the two countries has been valued at over US$24 billion.
India's major exports to Australia include mineral fuels, mineral oils, and their by-products, such as bituminous substances and mineral waxes. These exports were valued at US$2.5 billion during April-October FY25. India also exports natural and precious pearls, with these exports valued at US$203.39 billion in the same period.
Another significant export from India to Australia is pharmaceutical products, which were valued at US$248.14 million in April-October FY25. During April-March FY24, India's exports of pharmaceutical products were valued at US$454.36 million. Other major exports include engineering goods, RMG cotton, and gems and jewellery.
The Economic Cooperation and Trade Agreement (ECTA) between the two countries, which came into effect in December 2022, is expected to further boost bilateral trade. The agreement provides duty-free access to a large number of goods and aims to increase bilateral trade from US$27.5 billion to US$45 billion in five years.
Smoking in Australia: A Declining Trend?
You may want to see also
Explore related products
Australia's exports to India
Australia and India have been working to strengthen their economic ties in recent years. In 2021, the two countries signed the Economic Cooperation and Trade Agreement (ECTA), which aims to boost bilateral trade in goods and services. The agreement has made over 85% of Australian goods exports to India tariff-free and is expected to increase trade between the two countries significantly in the coming years.
- Coal and Gas: Coal is one of Australia's most valuable exports and is a significant source of energy for India. However, there has been a recent downturn in Australian coal exports to India due to India's increasing focus on renewable energy sources and a decline in energy policy.
- Gold: Gold is another valuable export from Australia to India. Gold exports contribute significantly to Australia's economy.
- Agriculture: Australia exports agricultural products to India, including pulses and lentils. The ECTA has reduced tariffs on these products, providing Australian farmers with better access to the Indian market.
- Education: Australia has a significant export market in education services to India. This includes providing educational opportunities and knowledge transfer to Indian students and professionals.
- Minerals: Australia is known for its vast mineral resources, and it exports critical minerals to India.
- Manufactured Goods: Australia also exports manufactured goods to India, although this sector may face competition from lower-wage countries.
It is important to note that Australia's exports to India are part of a broader trade relationship. While Australia has experienced a decline in exports to India in certain sectors, the overall trade agreement is mutually beneficial, providing India with access to much-needed resources and Australia with a diverse range of export destinations.
Consumer Rights: Australian Law and You
You may want to see also
Explore related products
Defence ties
The two countries' defence forces have been building robust links through regular personnel and training exchanges, such as short specialist courses and long-term positions. Australia and India have been committed to enhancing maritime cooperation, with their first formal bilateral naval exercise (AUSINDEX) held in 2015, and the next iteration taking place in Australia in 2017. They also participated in the Indian-hosted Exercise MILAN 2014, which included cooperation with other regional Navies.
In March 2023, during the India-Australia 18th Joint Ministerial Commission meeting, defence was one of the new areas discussed to be opened up to each other, along with critical minerals, mobility, education, sports, and space.
In March 2023, Australian Prime Minister Anthony Albanese and Indian Prime Minister Narendra Modi pledged greater defence ties. They discussed "The Indo-Pacific, maritime security, and defence cooperation," as well as "Establishing dependable and trustworthy supply chains and renewable energy."
Oil Discovery in Australia: Regions and Resources
You may want to see also
Frequently asked questions
India and Australia are Indo-Pacific partners with a shared vision for an open, prosperous, and rules-based Indo-Pacific region. In FY23, India was Australia's 9th largest trading partner, while Australia was India's 13th largest trading partner. The two countries have signed the Economic Cooperation and Trade Agreement (ECTA) in 2022, which aims to increase bilateral trade and reduce tariffs.
Major exports from India to Australia include petroleum products, engineering goods, pharmaceuticals, textiles and apparel, and gems and jewellery. India exported 5,124 different commodities to Australia in FY24, with a total export value of US$ 7.94 billion.
Australia's exports to India include coal, coke, briquettes, and iron ore. In March 2025, goods credits (exports) to India increased by $3,199 million, driven by non-rural goods. Australia is also committed to enhancing maritime cooperation with India and has participated in joint naval exercises.
