India and Australia signed a trade deal on Sunday under which the latter will grant duty-free access to its market for more than 95% of Indian goods such as textiles, leather, jewelery and sport. Prime Minister Narendra Modi called the pact “a real watershed moment for India-Australia relations”.
The India-Australia Economic and Trade Cooperation Agreement was signed by Minister for Trade and Industry Piyush Goyal and Australian Minister for Trade, Tourism and Investment Dan Tehan during a virtual ceremony, in the presence of Prime Minister Modi and his Australian counterpart Scott Morrison.
Trade Minister Goyal said the deal will help boost bilateral trade from $27 billion to $45 billion to $50 billion over the next five years.
Australia provides duty-free access to India for approximately 96.4% of exports (by value) from day one. This covers many products which currently attract 4-5% duty in Australia.
Australia is India’s 17th largest trading partner, while India is Canberra’s 9th largest. Two-way trade in goods and services stood at $27.5 billion in 2021.
India’s merchandise exports stood at $6.9 billion and imports at $15.1 billion in 2021. India’s top exports to Australia include petroleum products, textiles and clothing, engineered goods, leather, chemicals and gemstones, and jewelry. While imports mainly include raw materials, coal, minerals and intermediate goods.
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