India–Australia Trade Pact Completes Four Years: Exports Double, Zero-Duty Access Boosts Bilateral Growth

The India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed four years since its signing on April 2, 2022, marking a significant milestone in one of India's fastest-growing bilateral economic partnerships.

Over the past four years, the agreement has emerged as a cornerstone of India–Australia economic engagement, driving trade expansion, improving market access, and creating new opportunities for businesses, MSMEs, and workers in both countries.

Trade Surge: Indian Exports More Than Double

Since the implementation of the ECTA, India's exports to Australia have witnessed a remarkable surge, more than doubling from USD 4 billion in FY 2020–21 to USD 8.5 billion in FY 2024–25.

Key highlights include:

• Total bilateral trade reached USD 24.1 billion in FY 2024–25

• India's exports grew by 8% year-on-year in 2024–25

• Total trade stood at USD 19.3 billion in FY 2025–26 (up to February)

This growth underscores the increasing depth of economic integration and the effectiveness of tariff liberalisation under the agreement.

Historic Market Access: 100% Tariff Elimination by Australia

A defining feature of the ECTA has been its ambitious tariff reduction framework:

• Australia granted preferential access on 100% of tariff lines, covering all imports from India

• 98.3% of tariff lines became duty-free immediately

• The remaining 1.7% (113 tariff lines) are being phased out over five years

• From January 1, 2026, all Indian exports now enjoy zero-duty access into Australia

On the other hand, India extended preferential access on 70.3% of tariff lines, covering 90.6% of trade value, ensuring a balanced and mutually beneficial trade structure.

Sectoral Gains: Broad-Based Export Growth

The agreement has led to diversified and sustained export growth across multiple sectors:

• Textiles and apparel

• Pharmaceuticals

• Chemicals and engineering goods

• Agricultural and food products

This broad-based expansion reflects improved competitiveness of Indian products in the Australian market and enhanced integration into global value chains.

Strengthening Supply Chains and Industrial Growth

On the import side, the ECTA has ensured stable access to critical raw materials for India's industries, including:

• Base metals

• Raw cotton

• Chemicals and fertilisers

• Pulses

This complementary trade relationship has strengthened supply chain resilience, supported domestic manufacturing, and contributed to value addition across sectors.

Boost to Organic Trade: Landmark MRA Signed

A major milestone in bilateral cooperation was achieved with the signing of the Mutual Recognition Arrangement (MRA) on Organic Products on September 24, 2025.

The MRA:

• Recognises each country's organic certification systems

• Eliminates duplication in certification processes

• Reduces cost and time for exporters

• Enhances transparency and trust in organic trade

This step has opened new avenues for India's rapidly growing organic sector in the Australian market.

A Strategic Economic Partnership

The Ind-Aus ECTA has evolved beyond a trade agreement into a strategic economic partnership, delivering tangible benefits across:

• Businesses and exporters through improved market access

• MSMEs via simplified trade processes

• Workers and employment generation

• Consumers through greater product availability and competitive pricing

Looking Ahead

As both nations celebrate four years of the agreement, India and Australia have reaffirmed their commitment to:

• Expanding bilateral trade volumes

• Strengthening supply chains

• Promoting investment partnerships

• Deepening sectoral cooperation

With full tariff elimination now in effect and growing sectoral synergies, the India–Australia ECTA is poised to play an even greater role in shaping a resilient, diversified, and future-ready economic partnership.