The India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed four years since its signing on April 2, 2022, marking a significant milestone in the growing economic partnership between India and Australia.
Over the past four years, the agreement has played a crucial role in boosting trade, improving market access, and fostering deeper economic cooperation between the two nations.
Strong Growth in Bilateral Trade
The ECTA has delivered impressive results in terms of trade expansion:
- India’s exports to Australia more than doubled, rising from USD 4 billion (FY 2020–21) to USD 8.5 billion (FY 2024–25)
- Total bilateral trade reached USD 24.1 billion in FY 2024–25
- India’s exports recorded an 8% growth during 2024–25
- In FY 2025–26 (up to February), total trade stood at USD 19.3 billion
This consistent growth reflects the agreement’s success in reducing barriers and enhancing trade opportunities.
Tariff Liberalisation and Market Access
Under the ECTA:
- India provided preferential access on 70.3% of tariff lines, covering 90.6% of trade value
- Australia offered 100% tariff line coverage, ensuring full market access for Indian goods
Importantly:
- 98.3% of tariff lines became duty-free immediately
- Remaining tariffs are being phased out gradually
- From January 1, 2026, all Indian exports enjoy zero-duty access in Australia
Sectoral Gains and Trade Diversification
The agreement has resulted in broad-based sectoral growth, particularly in:
- Textiles
- Pharmaceuticals
- Chemicals
- Agricultural products
On the import side, India benefits from easier access to:
- Base metals
- Raw cotton
- Fertilisers
- Pulses
This complementary trade structure has strengthened supply chains and supported domestic industries.
Boost to Organic Trade Cooperation
A major development in bilateral relations came with the signing of a Mutual Recognition Arrangement (MRA) on Organic Products on September 24, 2025.
This agreement:
- Recognises each other’s organic certification systems
- Reduces duplication, cost, and delays for exporters
- Enhances transparency and trust in organic trade
Strengthening Economic Partnership
The Ind-Aus ECTA has emerged as a cornerstone of India–Australia economic engagement, delivering benefits across:
- Businesses and MSMEs
- Workers and entrepreneurs
- Consumers in both countries
Conclusion
As India and Australia celebrate four years of the ECTA, both nations have reaffirmed their commitment to:
- Expanding bilateral trade
- Strengthening supply chains
- Promoting investment partnerships
- Advancing long-term economic cooperation
The agreement continues to pave the way for a more resilient and dynamic economic partnership between the two countries.