Australia to end tariffs on all Indian exports from January: Goyal
In a significant development that is expected to bolster India’s export sector, Commerce Minister Piyush Goyal announced that Australia will eliminate tariffs on all Indian exports starting January 1, 2026. This move is part of the India-Australia Economic Cooperation and Trade Agreement (ECTA), which was signed in 2022. The announcement was made on the third anniversary of the deal, and it is anticipated to have far-reaching implications for Indian businesses and the economy as a whole.
According to Minister Goyal, 100% of Australian tariff lines will be zero-duty for Indian exports, effective January 1, 2026. This means that Indian exporters will no longer have to pay tariffs on their shipments to Australia, making their products more competitive in the Australian market. The minister stated that the agreement has already delivered sustained export growth, deeper market access, and stronger supply-chain resilience for Indian businesses.
The India-Australia ECTA is a landmark agreement that aims to strengthen economic ties between the two countries. The deal covers a wide range of areas, including trade in goods and services, investment, and economic cooperation. By eliminating tariffs on Indian exports, Australia is sending a strong signal that it is committed to increasing trade and investment with India.
The removal of tariffs is expected to benefit a wide range of Indian industries, including textiles, pharmaceuticals, and agriculture. Indian textile exporters, for example, will no longer have to pay tariffs on their shipments of fabrics, garments, and other textile products to Australia. Similarly, Indian pharmaceutical companies will be able to export their products to Australia without paying tariffs, making them more competitive in the Australian market.
The agreement is also expected to boost India’s services exports, including IT and IT-enabled services. Indian IT companies will be able to provide services to Australian businesses without facing tariffs or other trade barriers. This is expected to lead to increased collaboration between Indian and Australian companies in areas such as software development, data analytics, and cybersecurity.
Minister Goyal’s announcement has been welcomed by Indian industry leaders, who see it as a major opportunity for Indian businesses to expand their exports to Australia. The Confederation of Indian Industry (CII) has stated that the removal of tariffs will make Indian products more competitive in the Australian market and will lead to increased exports.
The ECTA is also expected to promote investment between the two countries. Australian companies will be able to invest in India without facing restrictions, and Indian companies will be able to invest in Australia. This is expected to lead to increased foreign direct investment (FDI) in India, particularly in areas such as infrastructure, manufacturing, and services.
In conclusion, the announcement by Minister Goyal that Australia will eliminate tariffs on all Indian exports from January 1, 2026, is a significant development that is expected to boost India’s export sector. The move is part of the India-Australia ECTA, which aims to strengthen economic ties between the two countries. The removal of tariffs will make Indian products more competitive in the Australian market, leading to increased exports and investment between the two countries.
The Indian government has been actively pursuing free trade agreements (FTAs) with other countries to increase India’s exports and promote economic growth. The ECTA is one of several FTAs that India has signed in recent years, including agreements with the United Arab Emirates, the United Kingdom, and Canada. These agreements are expected to play a key role in promoting India’s economic growth and development in the coming years.
As India continues to emerge as a major economic power, agreements such as the ECTA will be crucial in promoting the country’s exports and attracting foreign investment. The removal of tariffs on Indian exports to Australia is a significant step in this direction, and it is expected to have far-reaching implications for Indian businesses and the economy as a whole.
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