In a significant boost for Indian exporters, Australia is set to grant duty-free access to all Indian exports starting this Thursday under the existing trade pact. Commerce and Industry Minister Piyush Goyal announced this milestone on Monday, highlighting a major step in bilateral economic relations.
ECTA Delivers on Its Promise
Minister Goyal, via a social media post, stated that from January 1, 2026, 100% of Australian tariff lines will be at zero duty for Indian exports. This move is poised to unlock fresh opportunities, particularly for labour-intensive sectors within India. The India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into effect on December 29, 2022, has already fueled sustained export growth over the past three years.
The agreement has facilitated deeper market access and strengthened supply-chain resilience, benefiting a wide spectrum from large exporters to MSMEs, farmers, and workers. Reflecting this success, India's exports to Australia grew by 8% in the 2024-25 financial year, helping improve India's overall trade balance with the country.
Sector-Wide Growth and Gains
The minister detailed the broad-based gains witnessed across multiple industries. Strong performance was recorded in manufacturing, chemicals, textiles, plastics, pharmaceuticals, and petroleum products. A standout performer has been the gems and jewellery sector, which saw exports rise by 16% during the April to November period in 2025.
Agricultural exports have also recorded impressive, broad-based growth. Sharp increases were noted in shipments of fruits and vegetables, marine products, and spices. The coffee sector, in particular, experienced exceptional growth, showcasing the diverse potential of Indian agri-exports in the Australian market.
Deepening Ties in the Indo-Pacific
The ECTA was designed to deepen trade and investment ties between the two nations by progressively eliminating tariffs, simplifying market access, and supporting supply chain integration. Its importance has been further underscored as India seeks to diversify its export destinations, especially in light of recent strains in trade relations with the United States.
Minister Goyal added that ECTA continues to anchor India's economic engagement in the Indo-Pacific region. Both sides remain actively engaged in negotiations for a more comprehensive Comprehensive Economic Cooperation Agreement (CECA), aiming to build upon the strong foundation laid by ECTA.
This development marks a pivotal chapter in India-Australia trade, promising enhanced market access and economic cooperation for years to come.
