Australia-India FTA: Ayr of Great start but lots to do

December 29, 2023, marked the first anniversary of the Australia-India Economic Cooperation and Trade Agreement, or ECTA. ECTA means "unity" in Hindi.

- PHILIP GREEN

That is about as good a word as any to describe flourishing Australia-India ties, underpinned by dramatic growth in our economic relationship.

Australia and India's two-way goods trade has grown by nearly 60 per cent over the last five years. Last year we shipped more than 22 trillion worth of goods between our countries. India has become Australia's fourth largest export destination. Australia is now India's 10th largest export market.

ECTA provides the framework for long-term growth in our trade. Ninety-six per cent of Indian goods now enter Australia completely tariff-free. That will rise to 100 per cent by 2026. Eighty-five per cent of Australian goods enter India without tariffs-rising to 90 per cent over the next two years. India's companies have noticed and are profiting: of all Indian goods eligible for tariff cuts under ECTA, 77 per cent are entering Australia under the new tariff regime.

That is a much higher figure than most of India's other FTAS.

What sectors are benefiting? The flow of India's agricultural goods into Australia has increased by 16 per cent since ECTA entered into force. Australians are now enjoying more Indian rice, grains, vegetables and fruit.