Australia to end tariffs on all Indian exports from January: Goyal
In a significant development that is expected to boost trade relations between India and Australia, 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 three years ago. The agreement has already shown promising results, with sustained export growth, deeper market access, and stronger supply-chain resilience.
According to Minister Goyal, 100% of Australian tariff lines will be zero-duty for Indian exports, effective January 1, 2026. 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 move is expected to benefit a wide range of Indian industries, including textiles, pharmaceuticals, and agriculture.
The India-Australia ECTA was signed on April 2, 2022, with the aim of promoting trade and investment between the two countries. The agreement has already delivered significant benefits to both countries, with bilateral trade increasing substantially since its implementation. The elimination of tariffs on all Indian exports is a major milestone in the agreement, and it is expected to further boost trade between the two nations.
Minister Goyal stated that the agreement has delivered sustained export growth, deeper market access, and stronger supply-chain resilience. He also noted that the agreement has helped to increase trade between the two countries, with India’s exports to Australia growing significantly since the agreement came into effect.
The elimination of tariffs on all Indian exports is a major victory for Indian businesses, which have been seeking greater access to the Australian market. The move is expected to benefit small and medium-sized enterprises (SMEs) in particular, which often struggle to compete with larger companies due to the high costs of tariffs and other trade barriers.
The India-Australia ECTA is a comprehensive agreement that covers a wide range of areas, including trade in goods and services, investment, and economic cooperation. The agreement has helped to promote greater cooperation between the two countries, with a focus on areas such as education, research, and innovation.
In addition to the elimination of tariffs, the agreement has also led to greater cooperation between the two countries in areas such as customs procedures and trade facilitation. The agreement has helped to simplify trade procedures, reducing the time and cost of trading between the two countries.
The benefits of the India-Australia ECTA are not limited to trade alone. The agreement has also helped to promote greater people-to-people ties between the two countries, with a focus on areas such as education, tourism, and cultural exchange. The agreement has helped to increase the number of Indian students studying in Australia, as well as the number of Australian tourists visiting India.
In conclusion, the announcement by Minister Goyal that Australia will eliminate tariffs on all Indian exports starting January 1, 2026, is a significant development that is expected to boost trade relations between the two countries. The move is a major milestone in the India-Australia ECTA, which has already delivered significant benefits to both countries. With 100% of Australian tariff lines set to be zero-duty for Indian exports, Indian businesses are poised to gain greater access to the Australian market, leading to increased trade and investment between the two nations.
As the two countries continue to work together to promote greater trade and economic cooperation, it is likely that we will see even more significant developments in the years to come. The India-Australia ECTA is a powerful example of the benefits of free trade agreements, and it is a model that other countries can follow to promote greater trade and economic cooperation.
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