New Delhi: On Saturday, India and Australia signed an economic cooperation and trade deal under which Canberra will grant duty-free access to over 6,000 Indian products, including textiles, leather, furniture, jewellery, and machinery, in its market. The deal is expected to go into effect in four months.

In the presence of Prime Minister Narendra Modi and his Australian counterpart Scott Morrison, Commerce and Industry Minister Piyush Goyal and Australian Minister for Trade, Tourism and Investment Dan Tehan signed the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) in a virtual ceremony.  Goyal said, the pact will assist boost bilateral trade from USD 27.5 billion to USD 45-50 billion over the next five years. He went on to say that the accord will help create a big number of jobs, anticipated to be about 10 lakh over the next 5-7 years, because labour-intensive industries are expected to benefit the most.

From the start of the agreement, Australia will grant India duty-free access to about 96.4 percent of its exports, by value. This includes a wide range of products that are currently subject to a 4 percent to 5 percent customs charge in Australia.

Because Australian exports are concentrated in raw materials and intermediates, many Indian industries, particularly steel, aluminium, and fabric/garments, will benefit from cheaper raw materials, making them more competitive. To protect critical sectors, India has designated some commodities as exclusions, meaning that no tariff discounts will be granted to Australian imports.

India, Australia Sign Economic Cooperation, Trade Agreement

PM Modi urges on early closure of CECA with Australia

29 rare Indian statues brought back from Australia, PM Modi inspects