Australia to end tariffs on all Indian exports from January: Goyal
In a significant development that is expected to boost India’s exports to Australia, Commerce Minister Piyush Goyal has 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 three years ago. The agreement has already shown promising results, with sustained export growth, deeper market access, and stronger supply-chain resilience.
Speaking on the third anniversary of the ECTA, Goyal stated that 100% of Australian tariff lines will be zero-duty for Indian exports. This means that Indian businesses will no longer have to pay tariffs on any goods they export to Australia, making their products more competitive in the Australian market. The elimination of tariffs is expected to increase trade between the two countries, with India’s exports to Australia likely to rise significantly.
The India-Australia ECTA was signed on April 2, 2022, with the aim of strengthening economic ties between the two nations. The agreement has been a game-changer for Indian exporters, who have gained preferential access to the Australian market. The deal has also led to increased investment flows between the two countries, with Australian companies showing keen interest in investing in India’s growing economy.
Under the ECTA, both countries have agreed to eliminate tariffs on a wide range of goods, including textiles, leather, gems and jewelry, and pharmaceuticals. The agreement has also led to the simplification of customs procedures, making it easier for Indian exporters to do business with Australia. The deal has also opened up new opportunities for Indian service providers, including in the areas of education, tourism, and financial services.
The elimination of tariffs on all Indian exports to Australia is a major milestone in the implementation of the ECTA. It is expected to have a significant impact on India’s trade balance with Australia, which has traditionally been in favor of Australia. With the removal of tariffs, Indian exporters will be able to compete more effectively with their Australian counterparts, leading to an increase in India’s exports to the country.
The move is also expected to benefit small and medium-sized enterprises (SMEs) in India, which have been struggling to compete with larger companies in the Australian market. The elimination of tariffs will make it easier for SMEs to export their products to Australia, leading to an increase in employment opportunities and economic growth in India.
Goyal’s announcement has been welcomed by Indian industry leaders, who have hailed the move as a major breakthrough in India’s trade relations with Australia. The Federation of Indian Export Organisations (FIEO) has praised the government for its efforts in negotiating the ECTA and implementing its provisions.
The ECTA has also been praised for its potential to increase trade between India and Australia in the services sector. The agreement has opened up new opportunities for Indian service providers in areas such as education, tourism, and financial services. Indian companies are also expected to benefit from the agreement’s provisions on investment, which will make it easier for them to invest in Australia.
In conclusion, the elimination of tariffs on all Indian exports to Australia is a significant development that is expected to boost India’s exports to the country. The move is part of the India-Australia ECTA, which has already shown promising results in terms of sustained export growth, deeper market access, and stronger supply-chain resilience. The agreement has the potential to increase trade between the two countries, leading to economic growth and employment opportunities in India.
As Goyal stated, “The agreement has delivered sustained export growth, deeper market access and stronger supply-chain resilience.” The elimination of tariffs on all Indian exports to Australia is a major milestone in the implementation of the ECTA, and it is expected to have a significant impact on India’s trade balance with Australia.
With the ECTA in place, Indian exporters are expected to benefit from increased market access and reduced trade barriers. The agreement is also expected to lead to increased investment flows between the two countries, with Australian companies showing keen interest in investing in India’s growing economy.
Overall, the India-Australia ECTA is a significant development in India’s trade relations with Australia, and it has the potential to increase trade between the two countries. The elimination of tariffs on all Indian exports to Australia is a major milestone in the implementation of the agreement, and it is expected to have a significant impact on India’s trade balance with Australia.
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