The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed two years, marking a milestone in the economic partnership between the two nations.
Since its implementation, the agreement has driven mutual growth, expanded trade opportunities, and reinforced economic ties, the Indian Ministry of Commerce and Industry highlighted in a release on Sunday.
The Ind-Aus ECTA has been instrumental in advancing the bilateral merchandise trade, which has more than doubled since its inception. From USD 12.2 billion in 2020-21, trade surged to USD 26 billion in 2022-23.
Although total trade moderated to USD 24 billion in 2023-24, India’s exports to Australia grew by 14% during the same period. The strong momentum continues in the current fiscal year, with bilateral merchandise trade from April to November 2024 reaching USD 16.3 billion.
Preferential import data exchange commenced in 2023, showcasing the effective implementation of the agreement. The data revealed robust utilisation rates, with India’s export utilisation at 79% and import utilisation at 84%.
The agreement has significantly benefited critical sectors, including textiles, chemicals, and agriculture, which have shown substantial growth. Additionally, diversification in trade has been evident with exports of new products, such as gold studded with diamonds and turbojets.
Imports of essential raw materials, such as metalliferous ores, cotton, and wood products, have further bolstered India’s industries, underlining the win-win nature of the partnership. While sectors such as electronics and engineering exhibit growth potential, the foundation laid by the ECTA has created opportunities for further expansion.
The ECTA has been particularly impactful for Micro, Small, and Medium Enterprises (MSMEs), creating new opportunities for businesses and employment in both countries. This agreement not only reinforces the economic partnership but also aligns with the shared vision of inclusive growth and prosperity.
Building upon the success of the ECTA, the India-Australia Comprehensive Economic Cooperation Agreement (CECA) is currently under negotiation. With 10 formal rounds of discussions and inter-sessional meetings held so far, the CECA aims to advance bilateral trade with greater ambition.
A stocktake visit on CECA’s progress was recently concluded in New Delhi from December 4th to 6th, 2024, reflecting the commitment of both nations to deeper economic integration.
Both countries are dedicated to sustaining the momentum created by the ECTA. The shared goal is to achieve a bilateral trade target of USD 100 billion by 2030. The Government of India’s focus remains on strengthening collaboration and introducing innovative initiatives to drive mutual prosperity, aligning with Prime Minister Narendra Modi’s Vision 2047 of making India a developed country.
As India and Australia continue to deepen their economic ties, their partnership is poised to contribute to a more resilient and dynamic global economy. By fostering mutual prosperity and leveraging the complementarity of their economies, both nations are set to take their economic relationship to unprecedented heights.
The completion of two successful years of the Ind-Aus ECTA underscores the potential of economic partnerships in shaping a brighter future for nations and their citizens.
Support Our Journalism
The global Indian Diaspora and Australia’s multicultural communities need fair, non-hyphenated, and questioning journalism, packed with on-ground reporting. The Australia Today—with exceptional reporters, columnists, and editors—is doing just that. Sustaining this requires support from wonderful readers like you.
Whether you live in Australia, the United Kingdom, Canada, the United States of America, or India you can take a paid subscription by clicking Patreon.
