Now in force: Australia-India Economic Cooperation and Trade Agreement
The time is ripe to enter the Indian market! India is the world’s fastest growing large economy, with a GDP of $4.3 trillion and a market of nearly 1.5 billion people.
Access to this vibrant market has been boosted by the Australia-India Economic Cooperation and Trade Agreement (ECTA). ECTA entered into force on 29 December 2022, immediately eliminating tariffs on 85 per cent of Australian goods exports (by value) to India. A further 5.5 per cent of goods exports benefited from a double tariff cut (one on entry into force and another on 1 January 2023). Tariffs on these products will be phased to zero by 1 January 2028, making 90.5 per cent of goods exports to India tariff-free. In addition, very high tariffs of up to 150 per cent on some agriculture products have been substantially reduced.
In ECTA’s first month alone, Australian businesses claimed ECTA’s lower tariffs on over $2.5 billion worth of Australian exports to India. ECTA is the first FTA India has concluded with a developed economy outside of Asia. This provides Australian businesses with a valuable first-mover advantage into the Indian market. India is currently negotiating FTAs with the UK, Canada and the EU. Many Australian businesses are already taking advantage of this competitive position. For more information on business opportunities under ECTA, visit: dfat.gov.au/trade/agreements/ in-force/australia-india-ecta/ outcomes.
Australian lamb exporter, Mulwarra Export, will benefit from the elimination of India’s 30 per cent tariff on imported lamb. This will lower entry prices for Australian lamb and help increase exports. It should also help Mulwarra diversify into five-star restaurants and high-end retailers in India.
WA’s largest lobster exporter, Geraldton Fishermen’s Cooperative, secured a distributor in India in anticipation of the elimination on day one of India’s 30 per cent tariff on fresh rock lobster, and phased elimination of the 30 per cent tariff on frozen rock lobster by 1 January 2028.
Australian citrus exporter Nutrano hopes to increase
Australian services exporters, like Global Study Partners, will capitalise on the certainty and predictability of ECTA services outcomes while expanding their operations in India.
export volumes to the Indian market, taking advantage of India’s demand for Australia’s clean, green produce.
ECTA
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business envoy
Department of Foreign Affairs and Trade
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