India-aus trade pact in force from Dec 29

NEW DELHI: The India-australia Economic Cooperation and Trade Agreement (ECTA) will come into force from December 29 after both partners completed all formalities, paving the way for two-way duty-free trade, the two countries officially confirmed on Wednesday.

India will get zero duty benefit on 98.3% of its exports to Australia from the Day 1, and on 100% of tariff lines within five years; tariffs on 85% of Australia’s exports to India will be eliminated immediately. The deal will benefit India’s IT industry, labour intensive sectors, and students with post-study work visas. “India & Australia consolidate their long-standing partnership. Economic Cooperation & Trade Agreement, realised under the guidance of leaders of both countries, comes into effect from December 29, 2022. It is the dawn of a whole new era for our businesses & people,” commerce minister Piyush Goyal said in a tweet, highlighting key features such as zero duty access on 100% tariff lines and creation of 1 million additional jobs.

Australian PM Anthony Albanese on Wednesday called the agreement another step towards strategic relationship between two partners.