By Swetha Anil Kumar
From January 1 2026, all Indian exports will have 100% duty-free access to the Australian market. This is because of the Economic Cooperation and Trade Agreement (ECTA) that was signed between the two countries, Commerce and Industry Minister Piyush Goyal said on Monday.
The Minister said in a social media post that from 1 January 2026, 100% of Australian tariff lines will be zero-duty for Indian exports, unlocking fresh opportunities for labour-intensive sectors.
He also said that over the past three years, the agreement has delivered tangible results and the pact has driven sustained export growth, deeper market access and stronger supply-chain resilience, benefiting Indian exporters, MSMEs, farmers and workers alike.
Initiated three years ago, the trade deal has led to an 8% rise in Indian exports to Australia during the 2024-25 financial year.
The free trade agreement was signed in April 2022 and implemented from December 29, 2022, and India’s trade deficit with Australia has since narrowed by more than 42%, falling to $6.9 billion in 2024-25 from $12.06 billion in FY2022-23.
India’s export growth to Australia has been mainly led by manufacturing sectors like chemicals, textiles, pharmaceuticals, plastics, and petroleum products, along with strong growth in gems and jewellery. During April-November 2025, exports of gems and jewellery rose 16%. Because of fruits and vegetables, marine products, spices and a notable increase in coffee shipments, agricultural exports also expanded sharply.
The Minister said that the Mutual Recognition Arrangement (MRA) on Organic Products was signed, marking a major milestone by enabling seamless trade and lowering compliance costs for exporters.
As both sides remain engaged in negotiations for a Comprehensive Economic Cooperation Agreement (CECA), ЕСТА continues to anchor India’s economic engagement in the Indo-Pacific, the Minister added.
Officials say the move will particularly benefit labour-intensive industries and micro, small and medium enterprises (MSMEs), helping them compete more effectively against suppliers from other countries. It is also expected to strengthen supply-chain resilience and improve long-term market access.
Similar deals, like the recently concluded India-New Zealand FTA, also aim to provide zero-duty access for Indian goods, reinforcing India’s focus on strengthening global trade links in a shifting global economic environment.