India-Australia Trade Pact Strengthens Economic Ties Ahead of CECA Negotiations

Commerce and Industry Minister Piyush Goyal highlighted the significance of the India-Australia trade agreement as negotiations for the Comprehensive Economic Cooperation Agreement (CECA) progress. With zero-duty on Australian tariff lines set to begin in 2026, this pact is expected to unlock new opportunities for labor-intensive sectors. Celebrating three years of the Ind-Aus ECTA, Goyal noted substantial growth in exports, particularly in agriculture and manufacturing. Additionally, a new FTA with New Zealand promises further economic collaboration. Discover how these developments are shaping India's trade landscape.

By Narendra Chaudhary Dec 29, 2025, 15:30 IST

Strengthening Economic Relations

New Delhi, Dec 29: Commerce and Industry Minister Piyush Goyal announced on Monday 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, in line with 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 stated.

On the occasion of the third anniversary of the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), the minister highlighted the successful transformation of intentions into tangible results.

Goyal shared on the X social media platform, "Together, India and Australia are constructing a future characterized by mutual 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 laborers, according to Goyal.

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

The minister noted, "Agri-exports experienced 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."

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

In addition, India and New Zealand have finalized a comprehensive Free Trade Agreement (FTA), marking a significant economic and strategic advancement. This FTA abolishes 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 April–September 2025 period, reflecting a 5.86% annual increase, as the robust momentum from the previous fiscal year continued into the new financial year.