India-Australia Economic Cooperation and Trade Agreement comes into force

Tags: International Relations International News

India, Australia Economic Cooperation and Trade Agreement comes into force from 29 December, 2022.

Economic Cooperation and Trade Agreement (ECTA)

• India and Australia signed the Economic Cooperation and Trade Agreement (ECTA) on the 2nd of April 2022.

• ECTA is the first trade agreement of India with a developed country after more than a decade. 

• The agreement covers cooperation in the entire gamut of bilateral economic and commercial relations between the two friendly countries.

• This will benefit labour-intensive sectors of India such as gems and jewellery, textiles, leather, furniture, food and agriculture products, engineering products and medical devices.

• On the other hand, India has granted preferential access to Australia on more than 70 per cent of its tariff lines, mainly in raw materials.

• As a result of this agreement, 10 lakh jobs are expected to be created in the country.

India-Australia Trade Relations

• Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner. 

• India-Australia bilateral trade in goods and services is pegged at US$ 27.5 billion in 2021.

• India's merchandise exports to Australia grew by 135% between 2019 and 2021.

• India’s exports to Australia - Manufactured goods such as petroleum, medicaments, diamonds, jewellery, railway coaches and vehicles, milled rice and herbicides.

• India’s imports to Australia - 82% of its imports from Australia are coal, gold, copper ore, aluminium oxide, liquified natural gas, manganese ore, aluminium waste, pigments, lentils, etc.