India-Australia FTA: Piyush Goyal the minister of business and industry on Wednesday said that the free trade deal between India and Australia would go into effect on December 29.
India & Australia consolidate their long-standing partnership.
Economic Cooperation & Trade Agreement, realised under the guidance of leaders on both countries, comes into effect from December 29, 2022.
It is the dawn of a whole new era for our businesses & people. 🇮🇳🤝🇦🇺 pic.twitter.com/69YzR0h62G
— Piyush Goyal (@PiyushGoyal) November 30, 2022
“Economic Cooperation & Trade Agreement realised under the guidance of leaders on both countries, comes into effect from December 29, 2022,” Goyal wrote on Twitter.
Don Farrell, Australia’s minister of trade and tourism, had also revealed the FTA’s start date earlier in the day. “The (Anthony) Albanese government welcomes confirmation today that the Indian Government has completed its domestic requirements to enable implementation of the Australia-India Economic Cooperation and Trade Agreement (ECTA),” Farrell said in a statement.
In roughly five years, the FTA will assist practically treble the amount of bilateral trade to USD 45–50 billion. Beginning on December 29, 2022, “this trade agreement will bring additional market access opportunities for Australian firms and consumers,” Farrell said.
The agreement, which was signed on April 2, would give Indian exporters duty-free access to the Australian market for over 6,000 different industries, including textiles, leather, furniture, jewellery, and machinery.
Textiles and clothes, a few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, and electrical items are examples of labor-intensive industries that would greatly benefit.
According to the agreement, Australia will grant zero-duty access to India starting on day one for roughly 96.4% of exports (by value). This applies to a wide range of goods that are now subject to a 4%–5% customs charge in Australia. In 2021–2022, India’s exports of goods to Australia totaled USD 8.3 billion, while its imports totaled USD 16.75 billion.