From January 2026, 100% of Indian exports will enter Australia duty-free, boosting trade for MSMEs and farmers.
Union Minister of Commerce and Industry Piyush Goyal announced that all Indian exports will gain duty-free access to the Australian market starting 1 January 2026. This milestone marks the full implementation of the Economic Cooperation and Trade Agreement, which originally entered into force on 29 December 2022.
The trade pact has already significantly strengthened bilateral ties, with Indian exports to Australia rising by 8 percent during the 2024-25 period. Notable growth was recorded in several key sectors between April and November 2025:
- Gems and jewellery: Shipments increased by 16 percent.
- Agriculture: Robust growth was seen in fruits, vegetables, marine products, and spices, with coffee exports showing exceptional performance.
- Manufacturing: Deeper market penetration was achieved in chemicals, textiles, plastics, and pharmaceuticals.
The agreement has effectively narrowed India’s trade deficit with Australia, which fell to $6.9 billion in 2024-25 from $12.06 billion in 2022-23, a reduction of over 42 percent. A recent Mutual Recognition Arrangement on organic products has also been established to simplify trade and lower compliance costs for exporters.
While the 1 January 2026 deadline secures zero-duty status for 100 percent of tariff lines, both nations are currently negotiating a broader Comprehensive Economic Cooperation Agreement. This upcoming framework is intended to further integrate supply chains across the Indo-Pacific region and support India’s long-term economic objectives for 2047.
SOURCE – TIMES OF INDIA
