India-Australia FTA takes off

New Delhi: The free trade agreement (FTA) between India and Australia, which came into effect from Thursday, will help boost bilateral trade in goods and services to cross $70 billion in the next five years, according to economic think tank GTRI.

The India-Australia Economic Co-operation and Trade Agreement (ECTA) came into force from December 29. Global Trade Research Initiative (GTRI) said trade of value $23 billion would become duty-free from day one.

"This is 93 per cent of merchandise trade of $25 billion in 2021-22 between India and Australia. This creates opportunities for more trade in tough times. GTRI estimates suggest that the bilateral trade will cross $70 billion in the next five years due to buoyant trade relations and Australia's gradual weaning away from China," GTRI Co-founder Ajay Srivastava said in a statement. India's goods exports to Australia stood at $8.3 billion and imports from the country aggregated to $16.75 billion in 2021-22. He said

Under it, Indian goods on all tariff lines will get access to Australian market with zero customs duty.

Also additional 10 lakh jobs would be created in India under the ECTA, said Commerce and Industry Minister Piyush Goyal, while addressing a press conference in Mumbai. Indian yoga teachers and chefs would benefit from annual visa quota, he added. Over 1 lakh Indian students would also benefit from post-study work visa.

India has achieved the unique distinction of operationalising two Trade Agreements this year. After the entry into force of India-UAE Comprehensive Economic Partnership Agreement on May 1, the India-Australia Economic Cooperation and Trade Agreement has come into effect from December 29.

Also additional 10 lakh jobs would be created in India under the ECTA. Indian yoga teachers and chefs would benefit from annual visa quota. Over 1 lakh Indian students would also benefit from post-study work visa

-- Piyush Goyal, Commerce and Industry Minister