India signed a historic trade deal with Australia this Saturday which will serve to deepen the close ties India has with Australia.
The India-Australia Economic Cooperation and Trade deal was signed by Commerce and Industry minister Piyush Goyal and Australian Minister of Trade, Tourism and Investment Dan Tehan virtually. The deal was inked in the presence of Indian PM Narendra Modi and Australian PM Scott Morrison.
“These are never all or nothing deals as far as we’re concerned, we see all of these as the next step and the next step and the next step,” the Australian PM said, expressing both countries intention to build closer trade ties. “This is truly a watershed moment for India-Australia relations,” said PM Modi.
According to Mr. Goyal, this deal could improve trade between India and Australia from $27 billion to $45-50 billion in the next five years. Under this deal, Australia shall provide duty free access to 96.4% of the exports by value. These products normally attract a customs rate of 4-5%.
Australia is the 17th largest trading partner of India, while New Delhi is Canberra’s 9th largest partner. Bilateral trade in goods and services stood at $27.5 billion in 2021. India’s goods exports were worth $6.9 billion and imports aggregated to $15.1 billion in 2021.
Major exports by India to Australia include petroleum products, textiles and apparels, engineering goods, leather, chemicals and gems and jewellery. Imports mainly include raw materials, coal, minerals and intermediate goods.
Highlight by Aman Agarwal