India-Australia Economic Cooperation & Trade Agreement (ECTA)
From January 1, 2026, Australia will remove tariffs on all Indian exports, providing new opportunities for India's labor-intensive sectors, according to commerce and industry minister Piyush Goyal.
Key Developments and Impacts
- India's exports to Australia increased by 8% in 2024-25.
- Bilateral goods trade between India and Australia totaled $24.1 billion in 2024-25.
- India’s exports saw a 14% increase in 2023-24 and an additional 8% rise in 2024-25.
Sectoral Gains
- Strong gains observed across several sectors:
- Manufacturing
- Chemicals
- Textiles
- Plastics
- Pharmaceuticals
- Petroleum products
- Gems and jewellery - exports rose 16% in April-November 2025
- Agricultural exports saw broad-based growth:
- Significant increases in fruits and vegetables, marine products, and spices
- Exceptional growth in coffee exports
Other Notable Achievements
- Signing of the Mutual Recognition Arrangement (MRA) on Organic Products, which:
- Marked a major milestone
- Enabled seamless trade
- Lowered compliance costs for exporters
Future Plans
The two sides are negotiating a comprehensive economic cooperation agreement to further enhance trade relations.
