As of January 1, 2026, Australia has eliminated all tariffs on goods imported from India, granting completely free access to its nearly $2-trillion economy.
Trade between Australia and India has crossed 50 billion Australian dollars (Rs 3 lakh crore) driven by the Australia-India Economic Cooperation and Trade Agreement (ECTA).
India's goods exports to Australia have grown by 200% in the last five years, which is five times faster than India's global goods exports growth of 40%.
ECTA is estimated to have created 1 million jobs in India.
Australia and India are currently working to upgrade ECTA into a Comprehensive Economic Cooperation Agreement (CECA).
Detailed Insights:
The ECTA has resulted in a doubling of two-way goods trade between Australia and India over the past five years, with strong growth in Australian commodity exports fueling "Make in India".
Australian exports to India support an estimated 200,000 jobs in Australia.
Indian products, including Mahindra cars, agricultural produce, and garments, are widely available in Australian markets and are consumed by both the Indian diaspora and the wider Australian population.
India views Australia as a reliable partner in the Indo-Pacific region, with both countries aiming to build a future of shared prosperity and trusted trade.
The proposed CECA aims to further strengthen trade and investment ties across goods and services and support new critical minerals supply chains.
Australia has released "A New Roadmap for Australia’s Economic Engagement with India" to outline how it can contribute to and benefit from India’s economic growth.
Key Concepts Involved:
ECTA (Australia-India Economic Cooperation and Trade Agreement): A trade agreement aimed at reducing or eliminating tariffs between Australia and India.
CECA (Comprehensive Economic Cooperation Agreement): An upgraded version of ECTA, intended to further strengthen trade and investment ties.
Make in India: An initiative by the Indian government to encourage companies to manufacture their products in India.