India-Australia Trade Pact: A Catalyst for Economic Growth in the Indo-Pacific

The India-Australia Economic Cooperation and Trade Agreement is proving to be a vital element in enhancing economic relations between the two nations. With the upcoming zero-duty tariffs on Australian imports, Indian exporters are set to benefit significantly. Piyush Goyal emphasizes the partnership's success over the past three years, showcasing growth in various sectors, including agriculture and manufacturing. Additionally, a new agreement with New Zealand further strengthens India's trade landscape. This article explores the implications of these agreements for India's economic future.

By Narendra Chaudhary Dec 29, 2025, 13:28 IST

Strengthening Economic Ties

New Delhi: On Monday, Piyush Goyal, the Minister of Commerce and Industry, highlighted that as negotiations for the Comprehensive Economic Cooperation Agreement (CECA) progress with various countries, the trade agreement with Australia remains a cornerstone of India's economic strategy in the Indo-Pacific region, complementing the 'Make in India' initiative and the vision for 'Viksit Bharat 2047'.

Starting January 1, 2026, all Australian tariff lines will be duty-free for Indian exports, creating new opportunities for sectors that rely heavily on labor, Goyal announced.

Celebrating the third anniversary of the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), the minister remarked that this partnership has effectively turned intentions into tangible results.

Goyal shared on the X social media platform, "Together, India and Australia are forging a future characterized by shared prosperity and reliable trade."

Over the last three years, the agreement has facilitated consistent export growth, enhanced market access, and improved supply-chain resilience, benefiting Indian exporters, MSMEs, farmers, and workers, according to Goyal.

In FY 2024-25, India's exports to Australia increased by 8%, positively impacting India's trade balance. Significant growth was observed in manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewelry.

"Agricultural exports saw widespread growth, particularly in fruits, vegetables, marine products, spices, and a remarkable rise in coffee exports. Gems & Jewelry exports surged by 16% from April to November 2025," the minister noted.

A Mutual Recognition Arrangement (MRA) concerning organic products was signed, marking a significant achievement that facilitates smoother trade and reduces compliance costs for exporters.

Additionally, India and New Zealand have finalized a comprehensive Free Trade Agreement (FTA), a significant economic and strategic development. This FTA removes duties on all Indian exports and includes a $20 billion investment commitment over 15 years to bolster long-term economic and strategic collaboration.

India's total exports of goods and services reached an unprecedented $418.91 billion during the first half of the current financial year (April–September 2025), reflecting a 5.86% annual increase, continuing the strong momentum from the previous fiscal year that ended on March 31.