India-Australia Economic Cooperation and Trade Agreement Celebrates Two Years of Success
New Delhi [India], December 29 — The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has marked an extraordinary milestone, completing two years of fostering bilateral trade and strengthening the economic ties between the two nations. In a statement shared on Sunday, the Ministry of Commerce and Industry highlighted the achievements of this significant partnership.
The Ind-Aus ECTA has emerged as a pivotal framework for economic collaboration, opening new horizons for businesses, MSMEs, and employment opportunities in both countries. It has established a strong platform for a dynamic and mutually beneficial economic relationship.
As the agreement transitions into its third year, the Indian Government remains steadfast in its efforts to sustain this progress. Collaborative initiatives and innovative strategies are at the forefront, aligned with the Hon’ble Prime Minister’s Vision 2047 to position India as a developed nation.
Impressive Growth in Bilateral Trade
Since the inception of the Ind-Aus ECTA, bilateral merchandise trade has experienced a remarkable surge. From USD 12.2 billion in 2020-21, it has more than doubled to USD 26 billion in 2022-23. While trade moderated slightly to USD 24 billion in 2023-24, India’s exports to Australia continued to exhibit strong growth, increasing by 14%. The current fiscal year maintains this positive trend, with bilateral trade reaching USD 16.3 billion between April and November 2024.
The successful implementation of the agreement was underscored by the exchange of preferential import data in 2023, revealing an export utilization rate of 79% and an import utilization rate of 84%. Key sectors such as textiles, chemicals, and agriculture have demonstrated robust growth, complemented by the diversification of trade into innovative products like diamond-studded gold items and turbojets.
Strengthening Industrial Growth
On the import side, India has benefited from essential raw materials such as metalliferous ores, cotton, and wood products, which have significantly contributed to industrial expansion. Emerging areas, including electronics and engineering, also present promising avenues for growth, further enhancing the bilateral economic partnership.
Future Prospects: Comprehensive Economic Cooperation Agreement
Riding on the success of the ECTA, discussions are progressing on the India-Australia Comprehensive Economic Cooperation Agreement (CECA). With ten formal rounds of negotiations and numerous inter-sessional meetings completed, the CECA aims to elevate trade relations to new heights. A recent stocktake meeting held in New Delhi from December 4 to 6, 2024, reviewed progress and outlined the path forward.
A Shared Vision for Growth
Both nations have set an ambitious target of achieving USD 100 billion in bilateral trade by 2030. This shared commitment underscores their dedication to advancing economic integration, fostering mutual prosperity, and contributing to a more resilient global economy.
The Ind-Aus ECTA stands as a testament to the enduring strength of India-Australia relations and their collective vision for shared growth. As both countries continue to deepen their collaboration, the economic partnership is poised to unlock greater opportunities and deliver sustained benefits for years to come.
