The India-Australia Economic Cooperation and Trade Agreement was signed by Commerce and Industry Minister Piyush Goyal and Trade, Tourism and Investment Minister of Australia Dan Tehan in a virtual ceremony in the presence of Prime Minister Narendra Modi and his Australian counterpart Scott Morrison.
It is a balanced and equitable trade agreement that encompasses both trade in goods and services, which will contribute to consolidating the strategic relations between the two countries. PM Modi made a virtual speech on the occasion, describing the agreement as a “watershed moment” for bilateral relations.
Over the next 10 years, nearly 91 percent of Australia’s goods exports to India will be exempt from tariffs (valued at $13.4 billion). Households and businesses in Australia will also benefit, with 96 per cent of Indian goods entering duty-free upon entry into force. As the world’s largest democracy and fastest-growing economy, India is expected to grow by nine per cent in 2021-22 and 2022-23, and by 7.1 per cent in 2023-24.
India was Australia’s seventh largest trading partner, valued at $24.3 billion in two-way trade, and its sixth largest export market, valued at $16.9 billion. By 2035, Australia aims to make India one of its top three export markets and the third most popular overseas investment destination in Asia.