India-Australia Economic Cooperation and Trade Agreement comes into force
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.
Please Rate this article, so that we can improve the quality for you -