The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed two years, showcasing significant achievements that underline the complementary strengths of both economies. Since its inception, the agreement has enhanced trade relations, fostered growth for businesses, and created employment opportunities in both nations. As the agreement enters its third year, the Government of India remains focused on maintaining this positive momentum. This aligns with Prime Minister Narendra Modi’s vision for India to become a developed nation by 2047.
Bilateral Trade Growth
Under the Ind-Aus ECTA, bilateral merchandise trade has more than doubled, rising from $12.2 billion in 2020-21 to $26 billion in 2022-23. Although total trade slightly moderated to $24 billion in 2023-24, India’s exports to Australia grew impressively by 14%. Between April and November 2024, merchandise trade reached $16.3 billion, reflecting sustained strong momentum.
The exchange of preferential import data in 2023 has further strengthened trade relations. Export utilization reached 79%, while import utilization stood at 84%, underscoring the agreement’s effective implementation. This growth translates into tangible benefits for businesses and workers in both countries, fostering mutual prosperity.
Sectoral Growth and Diversification
The Ind-Aus ECTA has significantly boosted sectors such as textiles, chemicals, and agriculture. These industries have capitalized on the agreement, with substantial growth paving the way for future development. Additionally, exports of new product categories like gold studded with diamonds and turbojets demonstrate the diversification the agreement has enabled. Such diversification opens new markets and business opportunities, enhancing economic resilience.
On the import side, essential raw materials like metalliferous ores, cotton, and wood products have bolstered India’s industrial sectors, underscoring the mutually beneficial nature of the partnership. Promising areas such as electronics and engineering continue to show potential for growth as both nations explore new avenues of collaboration.
Advancing Towards a Comprehensive Agreement
Building on the ECTA’s success, India and Australia are actively working towards a Comprehensive Economic Cooperation Agreement (CECA). Ten formal rounds of discussions and additional inter-sessional meetings have been held so far. From December 4 to 6, 2024, a delegation visited New Delhi to assess progress and outline the next steps.
The CECA seeks to expand the bilateral trade agenda, aiming to achieve a target of $100 billion in trade by 2030. This ambitious goal reflects the shared commitment of India and Australia to deepen economic integration and foster a resilient global economy.
A Promising Future
The Ind-Aus ECTA has laid a strong foundation for robust economic ties between India and Australia. With plans to advance the CECA, both nations are poised to elevate their partnership, creating new opportunities for businesses and workers. As they continue to build on this success, the future of India-Australia trade collaboration promises mutual growth and global impact.
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