India-Australia ECTA Strengthens Trade Ties

04 Apr 2025 CW Team

The India-Australia Economic Cooperation and Trade Agreement (ECTA) marks its third anniversary, solidifying economic ties between both nations. Since its signing on April 2, 2022, the agreement has significantly boosted trade, industry, and employment.

In FY 2023-24, total bilateral trade reached USD 24 billion, reflecting a 11 per cent growth in India's exports to Australia. The positive momentum continues, with exports rising 4.1 per cent from April 2024 to February 2025 compared to the previous fiscal period.

The ECTA has expanded trade across multiple sectors, including textiles, pharmaceuticals, chemicals, and agriculture. New export categories such as Calcined Petroleum Coke, Diesel Generators, and Air Liquefaction Machinery highlight emerging trade opportunities. Additionally, electronics and engineering sectors present promising export potential for further growth.

On the import side, key raw materials like metalliferous ores, cotton, and wood products have helped strengthen India’s industrial base, reinforcing the mutually beneficial trade relationship.

As the ECTA enters its fourth year, India and Australia reaffirm their commitment to deepening economic collaboration, fostering industrial innovation, and driving global trade resilience.

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