India-Australia Economic Cooperation and Trade Agreement (ECTA) – Two Years of Success

PRELIMS 

The India-Australia Economic Cooperation and Trade Agreement (ECTA) marks two years of significant achievements.

Key Developments:

• Bilateral merchandise trade surged from USD 12.2 billion (2020-21) to USD 26 billion (2022-23).
• Trade moderated to USD 24 billion in 2023-24, with India’s exports to Australia growing by 14%.

About Ind-Aus ECTA:

• The India-Australia ECTA came into force in 2022.
• Currently, 96% of imports from India are tariff-free, with the goal of reaching 100% by 1 January 2026.
• Over 85% of Australian goods exports to India are tariff-free, set to increase to 90% by 2026.
• Building upon this success, the India-Australia Comprehensive Economic Cooperation Agreement is in progress to further enhance bilateral trade.