Positive signals from Aus FTA utilization

Indian exports to Australia slipped over 30% in the five months after a partial free trade deal came into effect in January, but the utilization rate of country-of-origin certificates an indicator of how much the deal is benefiting exporters-has reached 90%, an official aware of the development said

- Ravi Dutta Mishra

The utilization rate, which indicates the proportion of the exports that took place under the new tariff lines eligible for preferential treatment, comes with a lag. Mint was unable to ascertain the names and nationality of the exporters that used the certificates of origin.

These are early indicators but the general direction is positive trade is expected to grow on the basis of the high utilization rate.