New Delhi, April 2
The India-Australia Economic Cooperation and Trade Agreement, which completed four years on Thursday since it was first signed, has played a key role in propelling India's exports and enhancing trade between the two countries.
The agreement, signed on April 2, 2022, has created new opportunities for businesses, entrepreneurs, and employment in both countries over the last four years.
India's exports to Australia have more than doubled, rising from $4 billion in FY 2020-21 to $8.5 billion in FY 2024-25. During 2024-25, total bilateral trade stood at $24.1 billion, while India's exports to Australia recorded an 8 per cent growth over the previous year. In FY 2025-26 (up to February), India's total trade with Australia stood at $19.3 billion, according to data released by the Commerce Ministry.
Under the India-Australia ECTA, India granted preferential market access on 70.3 per cent of its tariff lines, covering 90.6 per cent of trade value, while Australia granted preferential market access to 100 per cent of imports from India.
Of this, 98.3 per cent of tariff lines became duty-free immediately upon implementation, while the remaining 1.7 per cent (113 tariff lines) are being phased out over five years. From January 1, 2026, all Indian exports are eligible for zero-duty market access into Australia, the official statement explained.
Sectoral gains under the ECTA have become more broad-based, with notable growth in exports across textiles, pharmaceuticals, chemicals, and agricultural products. On the import side, the agreement 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, the statement said.
A major milestone in bilateral cooperation was achieved with the signing of the Mutual Recognition Arrangement (MRA) on Organic Products between India and Australia on September 24, 2025. The MRA facilitates seamless trade in organic products by recognising each other's certification systems, thereby reducing duplication, cost, and time for exporters. This step has strengthened cooperation in the organic sector and enhanced transparency and trust in organic trade practices.
The agreement has emerged as a key pillar of bilateral engagement, delivering tangible benefits for businesses, MSMEs, workers, and consumers in both countries, the statement added.
- IANS
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