The Prime Minister Narendra Modi has expressed happiness on this and said that it is a watershed moment for Comprehensive Strategic Partnership between India and Australia. In response to a tweet by Australian Prime Minister, Anthony Albanese, PM Modi tweeted;
“Glad that IndAus ECTA is entering into force today. It is a watershed moment for our Comprehensive Strategic Partnership. It will unlock the enormous potential of our trade and economic ties and boost businesses on both sides. Look forward to welcoming you in India soon. @AlboMP”
The Australian Prime Minister had earlier said in a tweet that
‘Today the Aus-India Trade Agreement comes into force 🇦🇺🇮🇳. This will deliver new opportunities to Australian businesses.
At the invitation of @narendramodi
I will visit India in March with a business delegation committed to improving two-way trade between our two nations.’’
India and Australia had signed the Economic Cooperation and Trade Agreement (ECTA) on the 2nd April 2022.
IndAus ECTA provides for preferential zero-duty market access for Indian exports in Australia for 100 per cent of its tariff lines which will benefit benefit India’s labour-intensive sectors such as gems and jewellery, textiles, leather, furniture, food and agricultural products, engineering products, and medical devices. Similarly, Australia gets preferential access in India on over 70% of its tariff lines which are primarily raw materials and intermediaries.
As a result of this agreement, the total bilateral trade between Australia and India is expected to rise to about 45 to 50 billion dollars in five years from the existing 31 billion US dollar. Further, 1 million jobs are likely to be created in India.
India-Australia Economic Cooperation and Trade Agreement (INDAUS ECTA)
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