India-Australia Pact Will Give Immediate Market Access At Zero Duty: Official

The Economic Cooperation and Trade Agreement (ECTA) signed between India and Australia would provide immediate market access at zero duty accounting 96.4 per cent of India's exports in value terms to Australia, a senior government official said on Tuesday.
        
The ECTA has the potential to double bilateral ties between the two countries to USD 50 billion over the next five years, Ministry of Commerce and Industry joint secretary M Balaji said.
         
The deal would be a win-win situation for both the nations. India would get cheaper raw materials such as coal, aluminium for industries, making the country more competitive and provide quality goods to consumers at affordable prices, he said.
         
Balaji was speaking at a seminar and outreach programme on India-Australia Economic Cooperation and Trade Agreement here. The agreement signed last year came into force in December, 2022.
          
Besides India, Australia would also gain from the agreement as the country would receive preferential access to over 70 per cent of India's tariff lines, he said.
          
Around 40 per cent of the tariff lines would get zero-duty access immediately, he noted.
          
According to him, sectors including textiles, garments, gems and jewellery, leather and non-leather footwear, handicrafts, automobile parts and engineering products may gain larger marketshare in Australia following the deal.
           
"India-Australia ECTA will provide immediate market access at zero duty accounting for 98.3 per cent tariff lines, which is 96.4 per cent of India's exports in value terms to Australia," he said.
           
Giving some statistics, he said exports from Tamil Nadu during 2021-22 financial year was about USD 384 million and during the current year it may breach USD 500 million.
          
In Tamil Nadu, gems and jewellery, leather and non-leather footwear segment, handicraft, auto-parts, engineering products were expected to gain larger market share in the short term, he said.
        
India-Australia ECTA would gain immensely from textiles and garments sector, especially on the made-ups, apparel and garments also opening a window for the handloom sector, Balaji said.
     
Zonal additional director general of foreign trade Rajalakshmi Devaraj said the removal of trade barriers between the two countries serves the commercial interests of both the nations. "The competitiveness of Indian exports will increase due to immediate zero duty access and will result in higher market share," she said.
      
Australian Consul General for South India Sarah Kirlew, Export Credit Guarantee Corporation of India-Chennai regional manager Subash Chahar, Engineering Export Promotion Council of India regional director C H Nadigar were present on the occasion.