BIZ DESK
The India-Australia Economic Cooperation and Trade Agreement ECTA has completed two years of remarkable success, driving mutual growth and showcasing the complementarity of both economies.
It has significantly advanced trade ties, creating new opportunities for MSMEs, businesses and employment in both nations while reinforcing the foundation of their economic partnership. Ministry of Commerce and Industry said, Government of India is dedicated to sustaining this momentum through strengthened collaboration and innovative initiatives to drive mutual prosperity to realize the vision 2047 of the Prime Minister to make India a developed country.
Since its signing, bilateral merchandise trade has more than doubled, surging from over 12 billion dollars in 2020-21 to 26 billion dollars in 2022-23. Total trade, however, moderated in the year 2023-24 to 24 billion in 2023-24, with India’s exports to Australia growing by 14 per cent. The Ministry said, the current fiscal year continues to reflect strong momentum. Total merchandise bilateral trade from April to November this year reached over 16 billion dollars.
Exchange of preferential import data has commenced between both countries, highlighting the effective implementation of the agreement last year. The data reveals export utilization at 79 per cent and import utilization at 84 per cent.
Key sectors like textiles, chemicals, and agriculture have shown substantial growth, while exports on new lines, including gold studded with diamonds and turbojets highlight the diversification enabled by the agreement. Imports of essential raw materials, such as metalliferous ores, cotton, wood and wood products have fuelled India’s industries, contributing to the win-win nature of this partnership. Ministry of Commerce and Industry said, sectors such as electronics and engineering have room for growth.