India-Aus trade pact in force from Dec 29

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

India will be getting 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 visa.

“India & Australia consolidate their long-standing partnership. Economic Cooperation & Trade

Agreement, realised under the guidance of leaders on 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 Prime Minister Anthony Albanese on Wednesday called the agreement another step towards strategic relationship between two partners. “Australia and India are increasingly working together as strategic and economic partners… The Australia-India Economic Cooperation and Trade Agreement is the next step in elevating our relationship with India, the world’s fastest growing large economy,” he said.

An Australian government statement said: “From 29 December, tariffs on 85% of Australia’s exports to India will be eliminated and high tariffs on a further 5 per cent of goods will be phased down.”

“Entry into force of the agreement before the New Year delivcontinued

INDIA WILL BE GETTING ZERO DUTY BENEFIT ON 98.3% OF ITS EXPORTS TO AUSTRALIA FROM THE DAY 1, AND ON 100% OF TARIFF LINES WITHIN FIVE YEARS