In a landmark move set to significantly boost bilateral trade, Australia will eliminate tariffs on all Indian goods from January 1, 2026, fulfilling a major commitment under the India–Australia Economic Cooperation and Trade Agreement (ECTA) signed three years ago.
The decision comes amid strong momentum in trade relations, with Indian exports to Australia rising by 8% in FY 2024–25. Key growth sectors include gems and jewellery, textiles, pharmaceuticals, and agricultural products such as coffee, spices, and organic foods.
Union Commerce and Industry Minister Piyush Goyal described the move as a game-changer for small businesses, farmers, and workers in labour-intensive sectors, stating that tariff-free access would enhance India’s global competitiveness while creating sustainable employment opportunities.
A notable development alongside the tariff elimination is a new mutual recognition agreement on organic products, which will substantially reduce certification costs and regulatory hurdles for Indian exporters. This is expected to particularly benefit India’s growing organic farming community and MSMEs looking to expand into international markets.
The tariff-free regime underscores the deepening strategic and economic partnership between India and Australia. Both nations have expressed interest in expanding cooperation beyond trade into education, clean energy, digital economy, critical minerals, and supply-chain resilience.
As global trade dynamics evolve, the move positions India as a preferred trade partner for Australia, while reinforcing India’s vision of becoming a global manufacturing and export hub.
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