India-Australia trade gains from Modi, Albanese bonhomie

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By Our Special Correspondent

New Delhi, March 9: While India-Australia bonhomie saw the personal touch of Prime Ministers Narendra Modi and Anthony Albanese at the Ahmedabad cricket stadium during the cricket match, the bilateral trade is seen reaping the benefits of the Economic Cooperation and Trade Agreement (ECTA). The bilateral trade saw $2.5 billion gain from the lower tariffs arising from ECTA agreement in January this year alone.

India-Australia bilateral relations are seen gaining further strength despite the change of government in Canberra. “The ECTA signed between India and Australia is a transformative agreement which will unlock the next level of potential in trade and investment,” said Albanese, while addressing the India-Australia CEO forum in Mumbai on Thursday.

The pact is witnessing a wider participation of Australian and the Indian investors who are boarding the bilateral agreement to partake the emerging opportunities. “This juncture is a turning point in accelerating economic co-operation and mutual benefits in the relationship between Australia and India,” added Albanese.

The two countries are aiming to double the bilateral trade by 2027 from the level of $27.50 billion in 2021. “The bilateral trade has seen $2.5 billion worth benefit from the lower tariffs arising from ECTA agreement in January 2023 alone. The industry should think much bigger to satiate the demands of the growing relationship,” said Don Farrell, Australian minister for trade and tourism.

India emerged as ninth largest trading partner of Australia in 2022. Major exports to Australia included petroleum products, textiles and apparels, engineering goods, leather, pearls, mechanical appliances, iron and steel and gems and jewellery. Major imports included edibles, dyeing extracts, chemicals, wool, minerals and precious stones.

“India and Australia have a long-standing relationship, characterized by shared values of democracy, multiculturism, economic opportunities and most importantly vibrant diaspora with strong people to people links. Both countries value free and open societies, respect for human rights, and the rule of law,” said the Ministry of Commerce in an official statement.

India and Australia are also part of Quad, the four nations group, which also include the US and Japan. India is leveraging its diaspora and has also signed a pact with Australia to speed up the killing of the youth in the country to meet the growing demands of the trained manpower by the Australian industry.

India already has similar pact with Japan, while a free trade agreement negotiation is underway with the US. Joe Biden during the Tokyo Quad Summit had also unveiled the Indo Pacific Economic Partnership, which has been joined by several Asean nation, while India is yet to accept the trade part of the deal.