India and Australia on Sunday signed a trade agreement under which the latter will provide duty-free access in its market for over 95% of Indian goods such as textiles, leather, jewellery, and sports products. Prime Minister Narendra Modi called the pact “a truly watershed moment for India-Australia relations”.
The India-Australia Economic Cooperation and Trade Agreement was inked by Commerce and Industry Minister Piyush Goyal and Australian Minister for Trade, Tourism, and Investment Dan Tehan in a virtual ceremony, in the presence of PM Modi and his Australian counterpart Scott Morrison.
Commerce Minister goyal said that the agreement will help in taking bilateral trade from $27 billion to $45-50 billion in the next five years.
Australia is offering zero-duty access to India for about 96.4% of exports (by value) from day one. This covers many products which currently attract 4-5% customs duty in Australia.
Australia is the 17th largest trading partner of India, while India is Canberra’s 9th largest partner. Bilateral trade in goods and services stood at $27.5 billion in 2021.
India’s goods exports were worth $6.9 billion and imports aggregated to $15.1 billion in 2021. Major exports by India to Australia include petroleum products, textiles and apparel, engineering goods, leather, chemicals and gems, and jewellery. Whereas the imports mainly include raw materials, coal, minerals, and intermediate goods.
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