The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) would improve our relationship with one of our most significant Indo-Pacific partners and offer new markets for exporters and service providers across various industries. The India-Australia ECTA represents India’s first trade deal with a developed nation in more than ten years. India’s top trading partner is Australia, which ranks as its ninth-largest trading partner in the current fiscal year. In 2021, bilateral commerce in both products and services between India and Australia was valued at US$ 27.5 billion.


In 31 sectors and subsectors, including higher education, business services, tax, medical ,dental, architectural, urban planning, communication, construction and engineering, insurance and banking, hospitals, audiovisual, tourism and travel, India guarantees that Australian service providers will receive the best treatment possible.


India will grant single-brand retailing and franchising access to its market and make pledges on wholesale distribution services. The foreign equity limit of 74% for commercial presence will give Australian internet service providers in India greater chances to diversify their company.


Preferential tariffs for Australian goods exports to India:


  • Sheep meat : elimination of tariffs on entry into force (EIF).
  • Wool : elimination of tariffs on EIF.
  • Resources : elimination of tariffs on entry into force for coal, alumina, metallic ores such as copper, manganese and zirconium, titanium dioxide and certain non-ferrous metals. Tariffs on LNG will also be bound at 0 per cent on EIF.
  • Seafood : elimination of tariffs on entry into force for fresh rock lobster and elimination of tariffs over 7 years for other fresh, frozen and processed seafood products.
  • Infant formula : elimination of tariffs over 7 years.
  • Barley, oats and lentils : locked-in duty-free entry for barley and oats and immediate 50% reduction for in- quota exports of lentils.
  • Nuts : elimination of tariffs over 7 years on cashews, macadamias, shelled pistachios and hazelnuts. For almonds, immediate 50% tariff reduction on in-quota exports.
  • Fruit and vegetables : elimination of tariffs over 7 years for avocados, onions, cherries and berries. Reduction of tariffs over 7 years for apricots and strawberries. For oranges, mandarins and pears, immediate 50% tariff reduction for in-quota exports.
  • Wine : tariff reductions over 10 years for bottles over import prices of US$5 and US$15 and guaranteed best market access by India in any future FTA.


The AI-ECTA comprises mobility outcomes that will promote intercultural interaction, trade and business, and people-to-people connections between Australia and India.


In order to facilitate future mutual recognition of qualifications, licensing, and registration processes across professional services bodies, the AI-ECTA will support the formation of a Professional Services Working Group.


The Post-study work visa outcome for Indian students will apply upon completion of a diploma or trade qualification (stays of up to 18 months); a bachelor degree (stays of up to two years); a masters degree (stays of up to three years); and a doctoral degree (stays of up to four years).


Australia and India have agreed to make sure that any non-tariff measures are applied transparently and that they don’t unnecessarily obstruct trade. To make it simpler for Australian companies conducting business in India, the AI-ECTA incorporates pledges from both nations to make their laws, regulations, judgements, and rulings regarding the Trade in Goods chapter publicly available.


India will profit from Australia’s offer of preferential market access on all of its tariff lines. This covers all the industries with a high labor component that India is interested in exporting, including gems and jewelry, textiles, leather, footwear, furniture, food and agricultural products, engineering products, medical devices, and vehicles.


In contrast, India will grant Australia preferential access to more than 70% of its tariff lines, including those that are relevant to Australia’s export of raw materials and intermediaries like coal, mineral ores, and wines.


The trilateral Supply Chain Resilience Initiative (SCRI), which aims to improve the resilience of supply networks in the Indo-Pacific Region, includes Japan, India, and Australia as partners. India and Australia are also members of the recently established Quad, which also includes the US and Japan. The goal of the Quad is to deepen collaboration and partnership development across a number of areas of shared interest.


The India-Australia ECTA will significantly improve bilateral trade in goods and services, create new employment opportunities, raise living standards, and enhance the overall welfare of the two peoples. It will also further solidify the already close, strategic, and deep relationships between the two nations.



India-Australia Economic Cooperation and Trade Agreement (INDAUS ECTA) between The Government of the Republic of India and The Government of Australia :

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