India-Australia Trade Agreement Celebrates Two Years

December 30, 2024

The India-Australia Economic Cooperation and Trade Agreement (ECTA) has marked its second anniversary and has strengthened the economic ties between India and Australia. The Government of India aims to enhance collaboration and innovation to support its goal of becoming a developed nation by 2047.

Trade Growth and Statistics

Since the ECTA was signed, trade between India and Australia has surged. Merchandise trade increased from over $12 billion in 2020-21 to $26 billion in 2022-23. Although there was a slight decline to $24 billion in 2023-24, India’s exports to Australia rose by 14%. From April to November 2023, total merchandise trade exceeded $16 billion, indicating robust growth.

Utilization Rates

Both countries have begun sharing data on preferential imports. This data reveals a 79% utilization rate for exports and an 84% utilization rate for imports. Such figures demonstrate the effectiveness of the ECTA in facilitating trade.

Several sectors have experienced notable growth due to the ECTA. Textiles, chemicals, and agriculture have expanded . New export categories, including gold with diamonds and turbojets, illustrate the diversification of trade.

Import Benefits for India

India has benefited from importing raw materials such as ores, cotton, and wood. These imports support various Indian industries, enhancing production capabilities and economic growth.

The Ministry of Commerce and Industry has identified electronics and engineering as sectors with growth potential. Continued collaboration between India and Australia could lead to further advancements and opportunities in these areas.

GKToday Notes:
ECTA: The India-Australia Economic Cooperation and Trade Agreement, signed to enhance trade, has boosted bilateral merchandise trade and aims to encourage economic collaboration.
Merchandise Trade: Trade between India and Australia surged from over $12 billion in 2020-21 to $26 billion in 2022-23, showcasing the agreement’s impact on economic relations.
Utilisation Rates: The ECTA has led to a 79% utilisation rate for exports and 84% for imports, indicating effective trade facilitation between India and Australia.

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