Indian exports to Australia will get a major boost with 100% of Australian tariff lines set to move to zero duty under the India, Australia Economic Cooperation and Trade Agreement (ECTA) from from January 1, 2026.
Commerce and Industry Minister Piyush Goyal said the move would open up fresh opportunities for India's labour-intensive sectors, as the two countries marked the third anniversary of the bilateral trade pact. "Over the past three years, the Agreement has delivered sustained export growth, deeper market access, and stronger supply-chain resilience, benefiting Indian exporters, MSMEs, farmers, and workers alike",
The pact especially benefitted sectors like manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewellery, according to the minister. This includes a 16% rise in gems and jewellery exports from April to November 2025. India's exports to Australia grew 8% in FY2024-25, helping improve India's overall trade balance with the country, according to official data. The ECTA, which came into force in December 2022, aims to deepen trade and investment ties between India and Australia by progressively eliminating tariffs, simplifying market access, and supporting supply chain integration. This comes at a time when India is increasingly seeking to diversify export destinations after ties strained with the US, India's largest trading partner, under the Trump administration. India has been paying 50% tariff on exports to the US since August 27, 2025.
Australia will provide duty-free access to all Indian exports from January 1, 2026, under the Economic Cooperation and Trade Agreement (ECTA) between the two countries, Commerce Minister Piyush Goyal announced on Monday, marking the third anniversary of the deal. "From 1 January 2026, 100% of Australian tariff lines will be zero-duty for Indian exports", Goyal tweeted. He added that over the past three years, the agreement has delivered sustained export growth, deeper market access, and stronger supply-chain resilience, benefiting Indian exporters, MSMEs, farmers, and workers alike.
The ECTA, an 'early harvest' trade deal, covers select trade-related areas while India and Australia are in ongoing negotiations for a broader Comprehensive Economic Cooperation Agreement (CECA). Goyal noted that India's exports to Australia grew by 8% in 2024-25, improving the trade balance, with strong gains across manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems & jewellery. Agri-exports also recorded broad-based growth, with sharp increases in fruits, vegetables, marine products, spices, and exceptional growth in coffee, he added.