India-Australia ECTA
Marks Two Years of Success
[ABS News Service/30.12.2024]
The
India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) completes two years of remarkable success, driving
mutual growth and showcasing the complementarity of both economies. The Ind-Aus ECTA has significantly advanced trade ties, creating new
opportunities for MSMEs, businesses and employment in both nations while reinforcing
the foundation of their economic partnership. Entering its third year, the Government
of India is dedicated to sustaining this momentum through strengthened collaboration
and innovative initiatives to drive mutual prosperity to realize the vision 2047
of Hon’ble Prime Minister to make India a developed country.
Since
its signing, bilateral merchandise trade has more than doubled, surging from USD
12.2 billion in 2020-21 to USD 26 billion in 2022-23. Total trade, however, moderated
in the year 2023-24 to USD 24 billion in 2023-24, with India’s exports to Australia
growing by 14%. The current fiscal year continues to reflect strong momentum. Total
merchandise bilateral trade from April-November 2024 reached USD 16.3 billion.
Exchange
of preferential import data has commenced between both countries, highlighting the
effective implementation of the agreement in 2023. The data reveals export utilization
at 79% and import utilization at 84%.
Key
sectors like textiles, chemicals, and agriculture have shown substantial growth,
while exports on new lines, including gold studded with diamonds and turbojets highlight
the diversification enabled by the agreement. Imports of essential raw materials,
such as metalliferous ores, cotton, wood and wood products have fuelled India’s
industries, contributing to the win-win nature of this partnership. Sectors such
as electronics and engineering have room for growth.
Building
upon this success, the India-Australia Comprehensive Economic Cooperation Agreement
(CECA) is now in progress with 10 formal rounds and inter-sessional discussions
held so far. CECA builds on the foundation laid by the
ECTA, advancing the bilateral trade agenda with even greater ambition. A stocktake
visit on India-Australia CECA was also recently concluded in New Delhi from 4th
to 6th December 2024 to assess the progress made and chart the path forward.
Both
the parties are committed to building on the momentum created by the ECTA, driving
deeper economic integration and to achieve the target of trade to reach AUD 100
billion by 2030 between India and Australia. Together, India and Australia are poised
to take their economic partnership to new heights, fostering mutual prosperity and
contributing to a more resilient and dynamic global economy.