 "Indo-Aus trade pact from Dec 29; several goods to get duty-free access")
The interim free trade agreement between India and Australia will come into force on Thursday, providing duty-free access to thousands of domestic goods such as textiles, and leather in the Australian market.
The agreement will help almost double the bilateral commerce to USD 45-50 billion in around five years, according to exporters and industry players.
The Economic Cooperation and Trade Agreement (ECTA), which was signed on April 2, would provide duty-free access to Indian exporters of over 6,000 broad sectors, including textiles, leather, furniture, jewellery and machinery in the Australian market.
Labour-intensive sectors which would gain immensely include textiles and apparel, a few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, and electrical goods.
Federation of Indian Export Organisations (FIEO) Vice-President Khalid Khan said that Australia is one of the key markets for Indian exporters.
"This agreement will give immense opportunities from Day 1 of implementation that is December 29 for us," Khan said.
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Under the pact, Australia is offering zero-duty access to India for about 96.4 per cent of exports (by value) from the Day 1. This covers many products that currently attract 4-5 per cent customs duty in Australia.
India's goods exports to Australia stood at USD 8.3 billion and imports from the country aggregated to USD 16.75 billion in 2021-22.
Tariffs on 85 per cent of Australia's exports to India will be eliminated from Thursday.
"India and Australia signed the ECTA) on April 2 which will come into force on December 29," Minister of State for Commerce and Industry Anupriya Patel informed Parliament on December 16.
As the initial part of the agreement - ECTA - is coming into force, now both countries would start negotiations to widen the scope of the agreement.
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