A growth agenda for India- Australia economic ties

20.500.12592/c2fr59x

A growth agenda for India- Australia economic ties

3 Jun 2024

Energy, technology, education, and agriculture – India and Australia have taken significant steps in each sector over recent years to enhance cooperation and build on existing trade. The Economic Cooperation and Trade Agreement (ECTA) set down in September 2021 marks a significant milestone in this effort, which both governments see as poised to increase trade volumes by streamlining digital processes and eliminating tariffs on a substantial portion of goods. This agreement is hoped to pave the way for the more ambitious Australia-India Comprehensive Economic Cooperation Agreement (AIFTA) , with Australia aiming to place India among its top three export markets by 2035 . In February this year, India recorded a trade deficit of US$637 million with Australia. Significant imports from Australia into India include coal and gas, education, gold, and significant exports in return include tourism, medicines, pearls and gems along with refined petroleum. From 2023 to 2024 , India’s exports to Australia grew by 1.6 per cent, while imports significantly declined by 21.2 per cent. The ECTA, effective from December 2022, facilitated reductions in trade barriers, boosting India's export capabilities. Conversely, the significant decline in imports from Australia was mainly due to reduced demand for key commodities such as coal and briquettes, driven by India's shift towards renewable energy and an economic slowdown affecting energy policy.
india agriculture energy trade education technology renewable energy blockchain digital infrastructure australia exports imports tariffs international affairs indo-pacific digital payments economics and finance the pacific, east and southeast asia geopolitical regulatory differences aifta ecta

Authors

Soumya Bhowmick, Nilanjana Das

Published in
India

Table of Contents

Related Topics

All