The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed two years, marking a significant milestone in bilateral trade relations and fostering mutual growth. Since its signing, the agreement has not only strengthened the economic ties between the two countries but also created new opportunities for businesses, MSMEs, and employment, reinforcing the foundation of their economic partnership.
In the two years since the agreement’s implementation, bilateral merchandise trade has more than doubled, increasing from USD 12.2 billion in 2020-21 to USD 26 billion in 2022-23. Though trade moderated slightly in 2023-24, reaching USD 24 billion, India’s exports to Australia have grown by 14%, maintaining strong momentum. As of November 2024, total merchandise trade between the two nations stood at USD 16.3 billion.
The preferential import data exchange between India and Australia, which began in 2023, highlights the successful implementation of the ECTA. The data shows impressive export utilization at 79% and import utilization at 84%, demonstrating the agreement’s effectiveness.
Key sectors such as textiles, chemicals, and agriculture have seen substantial growth under the agreement, while new exports, including gold-studded diamonds and turbojets, signal diversification in trade. Additionally, India’s imports of critical raw materials—like metalliferous ores, cotton, and wood products—have supported the country’s industries, reinforcing the mutually beneficial nature of the partnership. There is also considerable potential for growth in sectors like electronics and engineering.
Building on the success of the ECTA, the India-Australia Comprehensive Economic Cooperation Agreement (CECA) is currently in progress. Ten formal rounds of discussions have taken place, along with inter-sessional talks. A recent stocktake visit to New Delhi from 4th to 6th December 2024 assessed the progress of the CECA and set the stage for the next steps.
Both countries are determined to continue building on the success of the ECTA and work towards their shared goal of achieving USD 100 billion in bilateral trade by 2030.
