The India-Australia Economic Cooperation and Trade Agreement, ECTA, first signed in April 2022, came into force on Dec 29, 2022.
As per the ECTA, around 96 percent of Indian goods can enter Australia duty-free, and 85 percent of Australian goods can enter India duty-free, said Australia’s High Commissioner to India, Barry O’Farrell.
Prime Minister Narendra Modi called the occasion a watershed moment in India and Australia’s Comprehensive Strategic Partnership.
The benefits
India will benefit by exporting more finished goods such as gems and jewelry, textiles, leather, footwear, furniture, food, agricultural and engineering products, medical devices, and automobiles said Commerce Minister Piyush Goyal.
Australia will gain by exporting raw materials and intermediaries such as coal, mineral ores, and wines.
The free trade agreement is expected to create hundreds of thousands of jobs in India.
While Indian Yoga teachers and Chefs will gain from an annual visa quota, Indian students will benefit from a post-study work visa, with a duration of 18 months to 4 years.
Double Taxation on IT services will also be scrapped.