The Economic Cooperation and Trade Agreement (ECTA) is officially ‘In Working Status’ from 29th December, 2022. Which means that the Australian and Indian Manufacturers & Exporters shall be able to Trade much more smoothly with “Import Duties “relaxed in a range of almost 95% Products by both Countries.
This clearly means that the Growing Trade Figures from Business with “Down Under shall be a Wonder“ Thanks to the New Australian Government and endless efforts by Indian Commerce & Industry Minister, Shri Piyush Goyal and his Team, this ECTA is up and running, after being Passed by the Parliaments of both the Countries in quick time.
The ECTA is estimated to generate over 1 Million Jobs in India.
Zero Duty Status to about 96% of India’s Export to Australia includes Engineering Goods, Textiles and Apparel, Leather, Gems and Jewellery etc. which shall give a huge boost to the respective business sectors in India. This shall be further taken to 100% of Indian Exports to Australia after 5 years.
At the same time, 85 % of Australian exports will enjoy zero-duty market access in India, which includes products like LNG, Aluminum, Metallic Ores, Coal, Sheep Meat & Wool etc. Import Duty will be lowered on Cotton, Almonds, Lentils, Australian wines and certain fruits (oranges, mandarins, apricots, and strawberries). Duty on Australian avocados, onions, pistachios, macadamias, cashews in-shell, blueberries, raspberries, and blackberries will be eliminated over 7 yrs
Key Market Protection:
Duty Tariff relaxation on certain products considered to be “Sensitive Sectors “shall Not be Relaxed by India under this ECTA. These include products like Wheat, Rice, Dairy Products, Beef, Chickpeas, Iron Ore, Toys, and Sugar etc.
Special impetus is given in the ECTA, with Strict Rules of ‘Origin of the Product’ in order to prevent Routing of products from other countries and also as a safeguard mechanism of Trade of ‘Only Products Originating or being Manufactured ‘by both countries.
The Services Sector ( Education, IT, Healthcare etc. ) will also get a huge boost due to this ECTA and even the VISA between Australia and India will have a positive lift, giving indirect boost to the Travel and Tourism sector.
Looks like some great Business Years between Australia and India, Thanks to the ECTA.
Source of Facts and Figures. https://rb.gy/msb8we