India-Australia trade pact to come into force from December 29
The India-Australia Economic Cooperation and Trade Agreement was signed on April 2, 2022
The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) will come into force from December 29, 2022.
This follows the exchange of notification between the two countries after completion of the ratification processes and the necessary domestic requirements, including internal legal procedures, the Ministry of Commerce and Industry said on Wednesday.
The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) was signed on April 2, 2022. It will enter into force 30 days after this exchange of written notification between India and Australia.
The agreement will significantly enhance bilateral trade in goods and services, create new employment opportunities, raise living standards, and improve the general welfare of the peoples of the two countries.
Industries, businesses, students, and professionals on both the sides are eager to avail the opportunities arising through this agreement, the Ministry of Commerce and Industry pointed out.
It is expected that with this agreement, the total bilateral trade will cross USD 45-50 bn in 5 years from the existing USD 31 bn, the ministry added.
The other expected benefits, according to the Ministry of Commerce and Industry, include:
- Duties on 100 percent tariff lines are to be eliminated by Australia under the agreement.
- It is estimated that an additional 10 lakh jobs would be created in India under ECTA.
- Indian Yoga teachers and chefs are set to gain with the annual visa quota.
- Over 1 lakh Indian students would benefit from post-study work visa (1.5-4 years) under the ECTA.
- The agreement is also likely to increase investment opportunities, promote exports, create significant additional employment and facilitate strong bonding between the two countries.
Australia is an important strategic partner of India. Both nations are also part of the four nation QUAD, Trilateral Supply Chain Initiative and the Indo-Pacific Economic Forum (IPEF).
"ECTA will open a new chapter on India-Australia Comprehensive Economic Partnership between two vibrant economies with shared interest and trade complementarities. The Agreement encompasses cooperation across the entire gamut of bilateral economic and commercial relations between the two friendly countries," the Ministry of Commerce and Industry said.