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India-Australia Trade Pact Anchors Indo-Pacific Economic Strategy, Says Goyal

The India-Australia Economic Cooperation and Trade Agreement marks three years of strengthening economic ties, with 100% of Australian tariff lines set to become zero-duty for Indian exports by 2026. The pact has already driven an 8% growth in India's exports to Australia in FY25, benefiting sectors like manufacturing, agriculture, and gems. A Mutual Recognition Arrangement on organic products has been signed to lower compliance costs and facilitate seamless trade. Alongside this, India has concluded a comprehensive FTA with New Zealand, featuring a $20 billion investment commitment, as India's total exports reach a record $418.91 billion in the first half of FY25.

Key Points: India-Australia Trade Deal Drives Export Growth, Indo-Pacific Engagement

  • 100% Australian tariffs zero by 2026
  • Exports grew 8% in FY25
  • Agri & gems sectors see sharp growth
  • Organic products MRA eases trade
  • NZ FTA concluded with $20B investment
2 min read

Trade pact with Australia anchors India's economic engagement in Indo-Pacific: Piyush Goyal

India's trade pact with Australia boosts exports, cuts tariffs by 2026, and anchors economic strategy in the Indo-Pacific, aligned with 'Make in India' and 'Viksit Bharat'.

"Together, India and Australia are building a future of shared prosperity and trusted trade. – Piyush Goyal"

New Delhi, Dec 29

Commerce and Industry Minister Piyush Goyal on Monday said that as the Comprehensive Economic Cooperation Agreement negotiations advance with other nations, India-Australia trade pact continues to anchor the country's economic engagement in the Indo-Pacific, aligned with 'Make in India' and the vision of 'Viksit Bharat 2047'.

From January 1, 2026, 100 per cent Australian tariff lines will be zero-duty for Indian exports, unlocking fresh opportunities for labour-intensive sectors, Goyal informed.

On the third anniversary of the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), the minister said that we are celebrating a partnership that has translated intent into impact.

"Together, India and Australia are building a future of shared prosperity and trusted trade," Goyal posted on X social media platform.

Over the past three years, the agreement has delivered sustained export growth, deeper market access, and stronger supply-chain resilience, benefiting Indian exporters, MSMEs, farmers, and workers alike, according to Goyal.

India's exports to Australia grew by 8 per cent in FY 2024-25, improving India's trade balance. Strong gains were witnessed across manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewellery.

"Agri-exports recorded broad-based growth, with sharp increases in fruits and vegetables, marine products, spices, and exceptional growth in coffee. Gems & Jewellery exports rose 16 per cent in April-November 2025," said the minister.

Mutual Recognition Arrangement (MRA) on organic products was signed, marking a major milestone, enabling seamless trade and lowering compliance costs for exporters.

Meanwhile, India and New Zealand have also concluded a comprehensive and long-awaited FTA, marking a major economic and strategic milestone. The FTA eliminates duty on 100 per cent of Indian exports, along with a $20 billion investment commitment over 15 years to strengthen long-term economic and strategic cooperation.

India's total exports of goods and services surged to a record high of $418.91 billion during April-September 2025 of the current financial year to register a 5.86 per cent annual increase as the strong momentum of the previous financial year, that ended on March 31, continued into the new fiscal year.

- IANS

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Reader Comments

P
Priya S
Great to see our agricultural exports getting a boost. Farmers growing fruits, spices, and coffee should see better prices. The organic products agreement is a smart move for the future. More such FTAs, please!
S
Sarah B
As someone working in the pharmaceutical export sector, the reduction in compliance costs mentioned is a huge relief. Streamlining trade processes is sometimes more valuable than just tariff cuts. Well done.
V
Vikram M
Good strategic move in the Indo-Pacific. But we must be cautious. While celebrating export growth, we must ensure our markets are also protected from a flood of imports that could hurt local industries. Balance is key.
R
Rohit P
Viksit Bharat 2047 in action! The New Zealand FTA with that investment commitment is a game-changer. This is how you build long-term economic strength, not just short-term trade. Feeling optimistic about our economic diplomacy.
M
Michael C
The data is impressive – 8% export growth and a record $418 billion. It shows consistent policy can yield results. Hope this momentum continues and translates into more stable employment, especially for the youth.

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