According to a think tank, Global Trade Research Initiative (GTRI), the free trade agreement (FTA) between India and Australia, will help boost bilateral trade in goods and services to cross US$ 70 billion in the next five years.

The bilateral trade, Economic Cooperation and Trade Development (ECTA) came into effect on December 29, 2022, and the trade value of US$ 23 billion is expected to become duty-free from day one.

93% of merchandise trade of US$ 25 billion in 2021-22 was between India and Australia. The exports from India to Australia stood at US$ 8.3 billion and imports accounted o US$ 16.75 billion in 2021-22. India’s exports include agricultural products, garments, and railway engines to telecom while 95% of the imports from Australia are raw material and mining products. Australia is allowing duty-free imports of all Indian products, and the duty on India’s labour-intensive exports, which includes textiles, apparel, footwear, furniture, etc. will decrease to 0% from 4-5%. Australian wine will gain from reduced-duty access to the Indian market as India charges 150% duty on wines.

There won’t be any threat to local producers, as India already imports these products in large values and has not provided concessions on dairy products, wheat, rice, etc. to protect farmers’ interests, the minister said.

Approximately 85.3% of Australian goods will enter India duty-free immediately and this is expected to rise to 89.7% in 10 years.

https://www.ibef.org/news/india-australia-fta-to-help-bilateral-trade-cross-us-70-billion-in-next-five-years#:~:text=Indian%20Economy%20News-,India%2DAustralia%20FTA%20to%20help%20bilateral%20trade%20cross%20US%24%2070,billion%20in%20next%20five%20years&text=According%20to%20a%20think%20tank,in%20the%20next%20five%20years.