Indian Free Trade Agreement Delivers New Market Opportunities to Australia

The Australian and Indian Governments have finalised the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) which will deliver new market access opportunities for Australian businesses and consumers from 29 December 2022.

The agreement will secure Australia's foothold in the world's fastest growing large economy and enable Australian businesses to unlock or expand their operations in a market of nearly one and a half billion consumers.

Custom Brokers Australia Director Renee Wilson said the new agreement plays a vital role in the continual trade between India and Australia as both markets expand and business confidence strengthens in this trade route.

“For exporters it will open new markets to reach around 1.4 billion consumers in the world’s fastest growing major economy in India and approximately 85% of goods will be duty free from Australia to India as AI-ECTA comes into effect,” said Ms Wilson.   

“For importers an elimination of duty on over 90% of goods coming into Australia from India, with transitional arrangements to 100% over 5 years will be applied to common commodities such as machinery, furniture and plastic ware or parts – just a snapshot of the extensive tariff reductions for Australian importers.”

Toowoomba and Surat Basin Enterprise (TSBE) Trade and Market Development Coordinator Molly Wagner said the AI-ECTA will offer additional benefits as both counties create new economic and workforce opportunities through this agreement.

“AI-ECTA will support tourism and workforce needs in regional Australia by making 1000 Work and Holiday Program places available to young adventurous Indian students,” said Ms Wagner.

“TSBE will be working across industries to reap the benefits of this fantastic collaboration.”

AGT Foods Australia Division Head for Australia Michael Brittain says as a professional regularly working in the trade space, the agreement is a welcome addition.

“This is going to provide great bilateral trade advantages for both nations as India is currently Australia’s 7th largest trading partner and a key market for Australian agri-food products as well as resources, manufacturing and more” said Mr Brittain.

For more information about the Australia-India Economic Cooperation and Trade Agreement
(AI-ECTA) visit https://www.dfat.gov.au/trade/agreements/negotiations/aifta/australia-india-ecta-outcomes