- Wednesday, March 05, 2025
By: Shubham Ghosh
Indian prime minister hailed the India-Australia Economic Cooperation and Trade Agreement (ECTA) that came into force on Thursday (29) calling it a “watershed moment” for the two nations’ Comprehensive Strategic Partnership.
In a tweet, he said he is looking forward to his Australian counterpart Anthony Albanese’s decision to visit India in March.
“Glad that IndAus ECTA is entering into force today. It is a watershed moment for our Comprehensive Strategic Partnership. It will unlock the enormous potential of our trade and economic ties and boost businesses on both sides. Look forward to welcoming you to India soon. @AlboMP,” he said.
Glad that IndAus ECTA is entering into force today. It is a watershed moment for our Comprehensive Strategic Partnership. It will unlock the enormous potential of our trade and economic ties and boost businesses on both sides. Look forward to welcoming you in India soon. @AlboMP https://t.co/aBGKvKCtZq
— Narendra Modi (@narendramodi) December 29, 2022
Modi’s tweet came in response to Albanese who said, “Today the Aus-India Trade Agreement comes into force. This will deliver new opportunities to Australian businesses. At the invitation of Narendra Modi, I will visit India in March with a business delegation committed to improving two-way trade between our two nations.”
Today the Aus-India Trade Agreement comes into force ????. This will deliver new opportunities to Australian businesses.
At the invitation of @narendramodi I will visit India in March with a business delegation committed to improving two-way trade between our two nations.
— Anthony Albanese (@AlboMP) December 29, 2022
The agreement between the two countries was signed on April 2 this year.
According to India’s Press Information Bureau, as the agreement comes into force, India’s exports will benefit from “preferential zero duty market access” in Australia.
The announcement by PM Albanese went on the sidelines of the 17th edition of the G20 summit which was held in Bali, Indonesia, in November.
In his statement. Albanese said that Modi will visit Down Under next year to discuss future prospects of greater economic cooperation between the two nations.
India will also provide preferential access to Australia on over 70 per cent of its tariff lines.
The agreement is likely to benefit the labour-intensive sectors of India such as gems and jewelry, textiles, leather, etc.
Australia will also provide Indian professionals additional market access and mobility facilities.
Exporters believe the agreement will boost bilateral commerce to $45-50 billion in around five years. The Prime Minister of Australia Anthony Albanese announced the news, adding that he will be visiting India in March at the invitation of Prime Minister Narendra Modi.
Anthony Albanese tweeted, “Today the Aus-India Trade Agreement comes into force. This will deliver new opportunities to Australian businesses. At the invitation of Narendra Modi, I will visit India in March with a business delegation committed to improving two-way trade between our two nations.”
According to the economic think tank Global Trade Research Initiative, the free trade agreement between India and Australia will boost bilateral trade in goods and services to go past $70 billion in the next five years, ABP Live reported.
“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.
