The India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) marked its fourth anniversary on Thursday, underscoring a significant phase in the deepening economic partnership between the two countries. Signed on April 2, 2022, the Ministry of Commerce and Industry said the agreement has played a pivotal role in enhancing trade flows, fostering industry linkages, and creating new opportunities for businesses, entrepreneurs, and employment in both countries.
Exports to Australia More Than Double in Four Years
Over the past four years, the pact has facilitated enhanced bilateral engagement through improved market access and reduced trade barriers. India’s exports to Australia have more than doubled, rising from USD 4 billion in FY 2020–21 to USD 8.5 billion in FY 2024–25, according to the Ministry. During the same period, total bilateral trade reached USD 24.1 billion, with Indian exports to Australia registering an 8 per cent growth over the previous year. In the ongoing fiscal year 2025–26 (up to February), India’s total trade with Australia stood at USD 19.3 billion.
Zero-Duty Access for Indian Goods from 2026
Under the India–Australia ECTA, India extended preferential market access on 70.3 per cent of its tariff lines, covering 90.6 per cent of trade value. In contrast, Australia granted preferential access on 100 per cent of its tariff lines, accounting for all imports from India. Notably, 98.3 per cent of these 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 set to enjoy zero-duty access in the Australian market.
Broad-Based Gains Across Key Sectors
According to the Ministry, the agreement has delivered broad-based sectoral gains, particularly in textiles, pharmaceuticals, chemicals, and agricultural products. On the import front, it has ensured access to essential raw materials such as base metals, raw cotton, fertilisers, chemicals, and pulses—key inputs for India’s manufacturing and industrial sectors. "This complementary trade structure has strengthened supply chain resilience and supported domestic value addition,” the Ministry said.
Organic Trade Gets Boost with Mutual Recognition Pact
A notable development in bilateral cooperation was the signing of a Mutual Recognition Arrangement (MRA) on organic products on September 24, 2025. The Ministry said the arrangement enables seamless trade by recognising each other’s certification systems, thereby reducing duplication, cost, and time for exporters. It is expected to enhance transparency and build greater trust in organic trade between the two countries.
Agreement Emerges as Key Pillar of Bilateral Ties
"The Ind-Aus ECTA has emerged as a key pillar of bilateral engagement, delivering tangible benefits for businesses, MSMEs, workers, and consumers in both countries. As India and Australia commemorate four years of the Ind-Aus ECTA, both sides reaffirm their commitment to expanding trade, strengthening supply chains, promoting investment partnerships, and advancing the shared objective of taking the bilateral economic partnership to even greater heights," the official release dated April 2, 2026, said.
