Australia to end tariffs on all Indian exports from January: Goyal
In a significant development, Commerce Minister Piyush Goyal announced that Australia will be scrapping 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. According to Goyal, 100% of Australian tariff lines will be zero-duty for Indian exports, marking a major milestone in the trade relationship between the two nations.
Goyal made this announcement on the third anniversary of the ECTA, highlighting the agreement’s success in delivering sustained export growth, deeper market access, and stronger supply-chain resilience. The elimination of tariffs on all Indian exports to Australia is expected to further boost trade between the two countries, providing Indian businesses with unparalleled access to the Australian market.
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 instrumental in increasing trade volumes, with Indian exports to Australia witnessing significant growth. The elimination of tariffs on all Indian exports is expected to take this growth to the next level, with Indian businesses poised to capitalize on the duty-free access to the Australian market.
The removal of tariffs will have a positive impact on various sectors, including textiles, pharmaceuticals, and agriculture. Indian textile exporters, for instance, will be able to export their products to Australia without paying any duties, making them more competitive in the Australian market. Similarly, Indian pharmaceutical companies will be able to export their products to Australia duty-free, increasing their market share and revenue.
The agreement is also expected to benefit Australian businesses, with India being one of the fastest-growing major economies in the world. Australian companies will be able to tap into India’s vast market, with the ECTA providing them with preferential access to the Indian market. The agreement will also facilitate investment between the two nations, with Australian companies expected to invest in various sectors in India, including infrastructure, education, and healthcare.
Goyal’s announcement has been welcomed by Indian businesses, with many exporters expressing their enthusiasm about the new opportunities that the duty-free access to the Australian market will provide. The Federation of Indian Export Organisations (FIEO) has hailed the move, stating that it will be a major boost to Indian exports and will help in achieving the government’s export targets.
The elimination of tariffs on all Indian exports to Australia is also expected to have a positive impact on the overall trade deficit between the two nations. India has been facing a significant trade deficit with Australia, with imports from Australia exceeding exports. The duty-free access to the Australian market is expected to help narrow this deficit, with Indian exports to Australia expected to increase significantly.
In conclusion, the announcement by Commerce Minister Piyush Goyal that Australia will be scrapping tariffs on all Indian exports from January 1, 2026, is a significant development that is expected to boost trade between the two nations. The India-Australia ECTA has been instrumental in strengthening economic ties between the two countries, and the elimination of tariffs on all Indian exports will take this relationship to the next level. Indian businesses are poised to capitalize on the duty-free access to the Australian market, and the agreement is expected to have a positive impact on various sectors, including textiles, pharmaceuticals, and agriculture.
As the trade relationship between India and Australia continues to grow, it is expected that the two nations will explore new areas of cooperation, including investment, technology, and innovation. The India-Australia ECTA is a significant step towards strengthening economic ties between the two nations, and the elimination of tariffs on all Indian exports is a major milestone in this journey.
The future of trade between India and Australia looks promising, with the two nations expected to continue to work together to strengthen their economic relationship. As Indian businesses prepare to capitalize on the duty-free access to the Australian market, it is clear that the India-Australia ECTA will play a significant role in shaping the trade landscape between the two nations.
About the Author
