India-Australia Economic Cooperation and Trade Agreement comes into force

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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.


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