India-Australia pact to boost trade and investment, say exporters

Agreement will benefit apparel, textiles, leather, footwear, gem & jewellery, engineering goods and pharmaceuticals, besides services: FIEO

The trade agreement signed between India and Australia on Saturday will help boost two-way commerce and investment between the countries, according to exporters.

The Federation of Indian Export Organisations (FIEO) said the pact would benefit several sectors, including apparel, textiles, leather, footwear, gem & jewellery, engineering goods and pharmaceuticals, besides services.

Australia is currently India's largest export destination in the Oceania region and is among the top 15 export destinations, FIEO President A. Sakthivel said.

Gem and Jewellery Export Promotion Council (GJEPC) Chairman Colin Shah said that after successfully negotiating a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, India had secured preferential access for the sector in Australia.

Key commodities that are exported to Australia include gold jewellery (plain and studded) and polished diamonds. The main commodities imported from Australia include precious metals - gold and silver bars.

"We expect Australia to benefit from access to areas where India is a world leader, such as diamonds. By providing preferential access for Indian gems and jewellery exports, the deal also makes it cheaper for Australian retailers to procure world-class jewellery crafted with finesse from Indian manufacturers," he said.

Mr. Shah also said he expected the agreement to boost bilateral gem and jewellery trade from $950 million at present to $1.5 billion.