India, Australia ink economic cooperation and trade pact to boost ties

This is truly a turning point for relations between India and Australia, Prime Minister Modi . said

This is truly a turning point for relations between India and Australia, Prime Minister Modi . said

India and Australia signed an economic cooperation and trade agreement on April 2 that would provide Canberra with duty-free access to its market for more than 95% of India’s goods, including textiles, leather, jewelry and sporting goods.

The India-Australia Economic Cooperation and Trade Agreement was signed by Minister for Trade and Industry, Piyush Goyal and Australian Minister for Trade, Tourism and Investment Dan Tehan, in a virtual ceremony, in the presence of Prime Minister Narendra Modi and his Australian counterpart. Scott Morrison.

This is truly a turning point for relations between India and Australia, Prime Minister Modi said.

Mr Morrison added that the pact will further deepen Australia’s close ties to India.

The agreement will help increase bilateral trade from $27 billion to $45-50 billion over the next five years, Mr Goyal said.

The India-Australia Economic Cooperation and Trade Agreement was signed by Minister Piyush Goyal and Australian Minister Dan Tehan in a virtual ceremony, attended by Prime Minister Narendra Modi and his Australian counterpart Scott Morrison.  Photo: Twitter/@PiyushGoyal

The India-Australia Economic Cooperation and Trade Agreement was signed by Minister Piyush Goyal and Australian Minister Dan Tehan in a virtual ceremony, attended by Prime Minister Narendra Modi and his Australian counterpart Scott Morrison. Photo: Twitter/@PiyushGoyal

Australia provides zero duty access to India from day one for approximately 96.4% of its exports (by value). This includes many products that are currently subject to 4-5% customs duty in Australia.

Labor-intensive sectors that would gain massively include textiles and clothing, few agricultural and fishery products, leather, footwear, furniture, sporting goods, jewelry, machinery, electrical appliances and rail cars.

Australia is India’s 17th largest trading partner while New Delhi is Canberra’s 9th largest partner. Bilateral trade in goods and services was $27.5 billion in 2021.

India’s goods exports were worth $6.9 billion and imports were $15.1 billion in 2021.

India’s major exports to Australia include petroleum products, textiles and clothing, engineering goods, leather, chemicals, and gemstones and jewelry.

Imports mainly include raw materials, coal, minerals and semi-finished products.

www.thehindu.com

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