India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed four years since its signing in 2022. It marks a significant milestone in the bilateral economic partnership between India and Australia. Over these four years, the Agreement has played a pivotal role in enhancing trade flows, fostering industry linkages and creating new opportunities for businesses, entrepreneurs and employment in both countries.
What is India-Australia ECTA?
- The India-Australia ECTA is a Free Trade Agreement (FTA) between India and Australia, signed on 02 April 2022.
- It provides preferential market access on thousands of tariff lines for goods traded between the two countries.
- It is designed to reduce trade barriers, enhance market access and strengthen bilateral economic cooperation.
- The agreement covers goods, services, investments and related areas of economic cooperation.
The agreement has significantly enhanced trade flows, market access, and economic cooperation between the two countries.
Growth in Bilateral Trade
- India’s exports to Australia: Have more than doubled, rising from US $4 billion in FY 2020–21 to US $8.5 billion in FY 2024–25.
- Total bilateral trade (FY 2024–25): Stood at US $24.1 billion, while India’s exports to Australia recorded an 8% growth over the previous year.
- FY 2025–26 (up to February): Stood at US $19.3 billion
Market Access Commitments
- India granted preferential market access on 70.3% of its tariff lines, covering 90.6% of trade value
- Australia granted preferential market access on 100% of its tariff lines, corresponding to 100% of imports from India.
- Of this, 98.3% of tariff lines became duty-free immediately upon implementation, remaining 1.7% (113 tariff lines) are being phased out over five years.
- From 1 January 2026, all Indian exports are eligible for zero-duty market access into Australia.
Sectoral Impact
- Growth in India’s exports was seen across textiles, pharmaceuticals, chemicals, and agricultural products.
- On the import side, ECTA continues to facilitate access to essential raw materials such as base metals, raw cotton, chemicals and fertilisers, and pulses, which are critical for India’s manufacturing and industrial sectors.
- This complementary trade structure has strengthened supply chain resilience and supported domestic value addition.
Major milestone of ECTA
- It was achieved with the signing of the Mutual Recognition Arrangement (MRA) on Organic Products between India and Australia in September 2025.
- MRA facilitates seamless trade in organic products by recognising each other’s certification systems, thereby reducing duplication, cost, and time for exporters.
- It has helped to strengthened cooperation in the organic sector and enhanced transparency and trust in organic trade practices.