India–Australia ECTA Marks 4 Years, Drives Trade to $24.1 Billion
Since its launch in April 2022, the agreement has significantly boosted trade flows, with total bilateral trade reaching $24.1 billion in 2024–25.
100% tariff line access, zero duty on all Indian exports to Australia from 2026
New Delhi: The India–Australia Economic Cooperation and Trade Agreement (ECTA) has completed four years since its signing, emerging as a key driver of bilateral trade and economic integration between the two countries.
Since its launch in April 2022, the agreement has significantly boosted trade flows, with total bilateral trade reaching $24.1 billion in 2024–25. India’s exports to Australia have more than doubled—from $4 billion in FY21 to $8.5 billion in FY25—reflecting sustained export momentum and deeper market access.
During FY 2025–26 (up to February), bilateral trade stood at $19.3 billion, indicating continued growth in economic engagement.
Under the agreement, Australia has granted preferential market access across 100% of its tariff lines, covering all imports from India. Notably, 98.3% of tariff lines became duty-free immediately, while the remaining are being phased out. From January 1, 2026, all Indian exports will enjoy zero-duty access to the Australian market.
India, in turn, has extended preferential access on 70.3% of tariff lines, covering 90.6% of trade value, enabling a balanced and mutually beneficial trade framework.
The agreement has led to broad-based sectoral gains, with exports rising across textiles, pharmaceuticals, chemicals, and agricultural products. On the import side, India continues to benefit from access to critical raw materials such as base metals, raw cotton, fertilisers, chemicals, and pulses—strengthening domestic manufacturing and supply chain resilience.
A key development in bilateral cooperation was the Mutual Recognition Arrangement (MRA) on organic products signed in September 2025. The arrangement enables seamless trade by recognising certification systems of both countries, reducing compliance costs and improving efficiency for exporters.
The ECTA has emerged as a cornerstone of India–Australia economic ties, delivering tangible benefits for businesses, MSMEs, and consumers, while reinforcing supply chains and investment flows.
Both countries have reaffirmed their commitment to further deepen trade, expand investment partnerships, and elevate the bilateral economic relationship in the coming years.
