Context:
Australia has just come out with a brand new comprehensive road map for strengthening their bilateral economic relationship with India.
Key Highlights
- New economic roadmap introduced by Australian Prime Minister Anthony Albanese to scale up trade and investment relations with India.
- Focus on four “superhighways of growth”
- Clean Energy
- Education & Skills
- Agribusiness
- Tourism.
List of big announcements
- $16 Million Trade and Investment Fund:
- Through the Australia India Trade and Investment Accelerator Fund, Australian interests will be expanded, and businesses will focus on operations in India.
Tariff Reductions under ECTA
- 90% of Australian exports to India would become free of tariffs by 2026 (up from 85% presently).
- Under the pact by 2026, ECTA also assured that 100% import into Australia from India would be tariff free (currently at 96%).
- A total of $2 billion of tariff savings for Australian business entities by December 2024.
Trade Growth
- Initially, AU exports to India increased by 35% in the first year of ECTA (excluding coal).
- Major agricultural imports from Australia into India include cotton, nuts, and fruits.
The Look Ahead & Next Steps
- Under consideration is Australia India negotiations for a full Free Trade Agreement (FTA), which would deepen economic integration.
- This roadmap is likely to open the way for an even stronger trade and investment flow between the two neighbor countries, leveraging rapid India growth.
- Areas of emphasis are clean energy, education, and agribusiness, which are in line with India’s very own sustainability and economy objectives.
Source: Business Standard
