Woo-hoo! India and Australia Put Pen to Paper: Bilateral Trade Jumps From $21bn to $45bn!

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The Confederation of Indian Industry (CII) Northern Region hosted an informative outreach session on the advantages and trade openings emerging from the India-Australia Economic Cooperation and Trade Agreement (ECTA). 

This business meeting aimed to help participants understand how they can capitalize on sector-wise opportunities.

During this session, the Indian industry was aware of the tremendous potential benefits of this Free Trade Agreement (FTA). Tapan Mazumder, Union Ministry of Commerce and Industry’s Additional Director General of 

Foreign Trade, announced that a significant advantage for India would be in its labour-intensive industries, which currently endure import duties ranging from 4 to 5% by Australia.

The Department of Commerce is having talks with the Australian government for bringing in investments in clean air technology, mining, education, and research and development. The warehousing systems in Australia can be used as a gateway to New Zealand, Fiji, and Papua New Guinea where Indian presence is minuscule,” said Mazumder.

To further the relationship between India and Australia, he encouraged the Confederation of Indian Industry (CII) and its members to provide more data to the Department of Commerce. 

These two countries can significantly strengthen their bilateral ties by joining this effort. P.J. Singh, the Vice Chairman at CII Punjab State Council, has declared that bilateral trade between India and Australia could double from $20 billion to a whopping $45 billion within five years due to the execution of ECTA- an agreement that grants India zero-duty access into Australia’s market starting December 29th, 2022. He congratulated both countries’ Prime Ministers for their swift conclusion of this monumental accord.

Australia has pledged to grant India zero-duty access to 98.3 per cent of its tariff lines immediately and the other 1.7 per cent incrementally within five years, which is estimated to bring a $10 billion surge in India’s merchandise exports by 2026-27, as well as generate 10 lakh jobs in India and more job opportunities for Australians.

The ECTA will provide invaluable resources such as steel and aluminium from Australia at a much lower cost and enable increased investments between the two countries. Virendra Pal Singh Mongia of EXIM Bank further commented that India-Australia relations are strengthening economically and strategically, making this agreement immensely beneficial to industries in both nations by unlocking their vast potential.

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