India, Australia ink economic cooperation and trade pact to boost ties

This is truly a watershed moment for India-Australia relations, Prime Minister Modi said

India and Australia on April 2 signed an economic cooperation and trade agreement under which Canberra would provide duty-free access in its market for over 95% of Indian goods such as textiles, leather, jewellery and sports products.

The India-Australia Economic Cooperation and Trade Agreement was inked by Commerce and Industry Minister Piyush Goyal and Australian Minister for Trade, Tourism and Investment Dan Tehan in a virtual ceremony, in the presence of Prime Minister Narendra Modi and his Australian counterpart Scott Morrison.

This is truly a watershed moment for India-Australia relations, Prime Minister Modi said.

Mr. Morrison added that the pact will further deepen Australia’s close ties with India.

The agreement will help in taking bilateral trade from $27 billion to $45-50 billion in the next five years, Mr. Goyal said.

Australia is offering zero duty access to India for about 96.4% of exports (by value) from day one. This covers many products which currently attract 4-5% customs duty in Australia.

Labour intensive sectors which would gain immensely include textiles and apparel, few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, electrical goods and railway wagons.