India-Australia Economic Cooperation and Trade Agreement

On 22^nd November, 2022, the Australian Parliament ratified the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA). The agreement was signed by India with the previous Australian administration under Prime Minister Scott Morrison.

About the Agreement: The India-Australia ECTA is the first trade agreement of India with a developed country in more than a decade.

• The Agreement encompasses cooperation across the entire gamut of bilateral economic and commercial relations between both the countries and covers the following areas:
  • Trade in Goods
  • Trade in Services
  • Rules of Origin
  • Technical Barriers to Trade (TBT)
  • Sanitary and Phytosanitary (SPS) Measures
  • Customs Procedures
  • Dispute Settlement
  • Telecom
  • Movement of Natural Persons
  • Pharmaceutical Products
  • Other areas of cooperation

Significance: With the IndAus ECTA, the total bilateral trade will cross US$ 45-50 billion over five years from the current estimate of $27 billion. India’s merchandise exports are likely to increase by 10 billion by 2026-27.

• As the labour-intensive sectors will be benefitted, it is expected to create additional employment of at least 10 lakhs jobs in India, create ample opportunities for investment, and promotion of start-ups.
• The FTA would provide enhanced job opportunities for Indians in Australia and increase flow of remittances to India.