Australia's Economy
Australia and India: The 2022 Trade Deal
How the India-Australia Economic Cooperation and Trade Agreement of 2022 cut tariffs, what each country gains, and the growing strategic partnership.
India and Australia signed the Economic Cooperation and Trade Agreement (ECTA) in April 2022; it took effect in December 2022.
What it does
- Australia removed tariffs on almost all Indian exports, like textiles, leather, jewellery and engineering goods.
- India cut tariffs on Australian coal, wool, wine (partly), lentils and some fruits.
Other links
- Students: India is a top source of students in Australia.
- Migration: Indian-born Australians are one of the largest migrant groups.
- Critical minerals: partnerships on lithium and cobalt for India’s EV industry.
- Cricket: a shared passion and business link.
Strategic ties
Both are members of the Quad with the US and Japan.
Next step
The countries have negotiated a broader Comprehensive Economic Cooperation Agreement (CECA).
India’s first
ECTA was India’s first trade deal with a developed country in over a decade.
The tariff-free T-shirt
After ECTA, Indian cotton T-shirts enter Australia tariff-free, helping Tiruppur exporters compete.
Thinking India avoids trade deals with rich countries
ECTA (2022) was a deal with a developed country.
Key takeaways
- India-Australia ECTA was signed in April 2022.
- Australia removed tariffs on almost all Indian exports.
- India cut tariffs on coal, wool and more.
- Both are Quad members.
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