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Both nations signed the Australia-India Economic Cooperation and Trade Agreement over the weekend, removing tariffs on more than 85 per cent of goods exported to India.
The Australia-India Economic Cooperation and Trade Agreement is further designed to produce a wide range of economic benefits for Australian households, with 96 per cent of goods imported from India duty-free.
Under the agreement, the number of goods exported from Australia without tariffs is expected to grow to 91 per cent over the coming decade as restrictions continues to drop – currently valued at $13.4 billion.
According to the federal government, the agreement is a critical milestone with India the “fastest-growing major economy”, with 9 per cent growth projected over the current financial year.
Prime Minister Scott Morrison explained that the agreement is essential for diversifying Australia’s trade portfolio.
“This agreement opens a big door into the world’s fastest growing major economy for Australian farmers, manufacturers, producers and so many more,” the Prime Minister said.
“By unlocking the huge market of around 1.4 billion consumers in India, we are strengthening the economy and growing jobs right here at home.
“This is great news for lobster fishers in Tasmania, wine producers in South Australia, macadamia farmers in Queensland, critical minerals miners in Western Australia, lamb farmers from New South Wales, wool producers from Victoria and metallic ore producers from the Northern Territory.
“This agreement has been built on our strong security partnership and our joint efforts in the Quad, which has created the opportunity for our economic relationship to advance to a new level.”
According to the federal government, tariffs are eliminated from a range of goods including sheep meat, fruits, vegetables, minerals and resources.
It is further expected that certain qualifications and licensing will now be recognised across both nations, coupled with new Work Holiday program places.
Minister for Trade, Tourism and Investment Dan Tehan explained that the reduction in tariffs will bring Australia and India closer together.
“This agreement will turbocharge our close, longstanding and highly complementary economic relationship in areas such as critical minerals, professional services, education and tourism,” Minister Tehan said.
“It will create new opportunities for jobs and businesses in both countries, while laying the foundations for a full free trade agreement.”
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