Australia won't impose tariffs on Indian exports from next year

Australia won't impose tariffs on Indian exports from next year

The India-Australia Economic Cooperation and Trade Agreement (ECTA) came into force in December 2022. Under this deal, Australia has agreed to eliminate tariffs on all Indian exports starting January 1, 2026.

Commerce and Industry Minister Piyush Goyal announced the development as both countries marked the third anniversary of this bilateral trade pact.

The move is expected to significantly boost India's labor-intensive sectors.

ECTA: A catalyst for export growth and market access

Goyal highlighted the ECTA's role in driving export growth, enhancing market access, and strengthening supply-chain resilience.

The minister emphasized that Indian exporters, MSMEs (micro, small and medium enterprises), farmers, and workers have all benefited from this agreement.

He also noted that sectors like manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewelry have particularly benefitted from this pact.

ECTA boosts India's export growth to Australia

India's exports to Australia grew by 8% in FY2024-25, a development that has improved the overall trade balance between the two countries.

The ECTA, which came into effect in 2022, is designed to strengthen trade and investment ties between India and Australia.

It seeks to do this by progressively eliminating tariffs, simplifying market access, and supporting supply chain integration.

ECTA aligns with India's strategy to diversify export destinations

The ECTA's implementation also comes at a time when India is looking to diversify its export destinations. This comes after India's relations with US, its largest trading partner, deteriorated. Notably, India is paying a 50% tariff on exports to the US since August 27, 2025.