India and Australia on Saturday signed an economic and trade cooperation agreement under which Canberra will provide duty -free access in its market to more than 95 per cent of Indian goods such as textiles, leather, jewelery and sporting products.
The India-Australia Economic and Trade Cooperation Agreement was signed by Trade and Industry Minister Piyush Goyal and Australian Trade, Tourism and Investment Minister Dan Tehan in a virtual ceremony, in the presence of Prime Minister Narendra Modi and his Australian counterpart Scott Morrison.
This is truly an important moment for India-Australia relations, Mr Modi said.
Mr Morrison added that the alliance would further strengthen Australia’s close ties with India.
The deal will help in taking bilateral trade from $ 27 billion to $ 45-50 billion over the next five years, Mr Goyal said.
Australia offered zero-duty access to India for about 96.4 per cent of exports (by value) from day one. This covers many products that currently attract 4-5 per cent of customs duty in Australia.
The labor -intensive sectors that will reap huge profits include textiles and clothing, some agricultural and fish products, leather, footwear, furniture, sporting goods, jewelery, machinery, electrical goods and railway carriages.
Australia is India’s 17th largest trading partner, while New Delhi is Canberra’s 9th largest partner. Bilateral trade in goods and services will amount to $ 27.5 billion in 2021.
Indian exports of goods are worth $ 6.9 billion and imports are aggregated to $ 15.1 billion in 2021.
Major exports by India to Australia include petroleum products, textiles and clothing, engineering goods, leather, chemicals and jewelery as well as jewelery.
Imports mainly include raw materials, coal, minerals and intermediate goods.