**Executive Summary**
This report marks the four-year anniversary of the India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), signed on April 2, 2022. It highlights a significant surge in bilateral trade, which reached USD 24.1 billion in FY 2024–25, and details the progression toward 100% duty-free access for Indian exports. A critical deadline is established for January 1, 2026, when all Indian exports will become eligible for zero-duty entry into Australia.
**Key Points / Main Content**
**Trade Growth and Performance**
* Total bilateral trade reached USD 24.1 billion in FY 2024–25, with India’s exports to Australia recording an 8% growth over the previous year.
* India’s exports have more than doubled since the agreement's inception, rising from USD 4 billion in FY 2020–21 to USD 8.5 billion in FY 2024–25.
* Trade for the current fiscal year (FY 2025–26, up to February) stands at USD 19.3 billion.
**Tariff Concessions and Market Access**
* Australia has granted preferential market access on 100% of its tariff lines for Indian imports.
* While 98.3% of Australian tariff lines became duty-free immediately, the remaining 1.7% (113 lines) are being phased out over five years.
* India has granted preferential access on 70.3% of its tariff lines, covering 90.6% of trade value.
* **Key Date:** Effective January 1, 2026, all Indian exports to Australia will benefit from zero-duty market access.
**Sectoral Developments and Supply Chain Resilience**
* Export gains are broad-based, with significant growth in textiles, pharmaceuticals, chemicals, and agricultural products.
* The agreement facilitates Indian industrial access to critical raw materials, including base metals, raw cotton, chemicals, fertilizers, and pulses.
* A Mutual Recognition Arrangement (MRA) for organic products was signed on September 24, 2025, to recognize each other’s certification systems.
**Impact Analysis**
**Indian Exporters**
**Impact**
Exporters benefit from reduced trade barriers and doubling export values. The MRA for organic products specifically reduces certification costs, time, and administrative duplication.
**Action Required**
Exporters should prepare to utilize 100% zero-duty access starting January 1, 2026, and align organic certifications with the new MRA standards to facilitate seamless trade.
**Indian Manufacturing and Industrial Sectors**
**Impact**
These sectors gain improved access to essential raw materials and minerals, supporting domestic value addition and strengthening supply chain resilience.
**Action Required**
Industries should leverage the streamlined access to base metals and chemicals to enhance production and competitive positioning.
**MSMEs and Workers**
**Impact**
The agreement creates new opportunities for business expansion, entrepreneurship, and employment across both nations through enhanced industry linkages.
**Action Required**
Small businesses and entrepreneurs should explore new market entry points created by the broad-based sectoral growth in textiles, agriculture, and chemicals.
Key Entities Referenced
India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA): A bilateral trade agreement providing preferential market access and aiming for zero-duty access on all Indian exports to Australia by 2026.
Mutual Recognition Arrangement (MRA) on Organic Products: A milestone agreement between India and Australia that facilitates trade by recognizing each other’s organic certification systems.
Ministry of Commerce & Industry: The Indian government ministry responsible for overseeing the implementation and monitoring the progress of the Ind-Aus ECTA.
Ministry of Commerce & Industry
India–Australia ECTA Completes Four Years,
Strengthening Bilateral Economic Partnership
India–Australia Trade Reaches USD 24.1 Billion in 2024–25
Amid Strong Export Growth
Australia Grants 100% Tariff Line Access to India Under
ECTA; Zero Duty on All Exports from 2026
Posted On: 02 APR 2026 1:19PM by PIB Delhi
The India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) completes four years
since its signing today, marking an important milestone in the evolving economic partnership between
India and Australia. Since its signing on 2 April 2022, the Agreement has played a pivotal role in
enhancing trade flows, fostering industry linkages, and creating new opportunities for businesses,
entrepreneurs, and employment in both countries.
Over the past four years, the Agreement has continued to strengthen bilateral economic engagement, with
both sides benefiting from improved market access and reduced trade barriers. India’s exports to Australia
have more than doubled, rising from USD 4 billion in FY 2020–21 to USD 8.5 billion in FY 2024–25.
During 2024–25, total bilateral trade stood at USD 24.1 billion, while India’s exports to Australia recorded
an 8% growth over the previous year. In FY 2025–26 (up to February), India’s total trade with Australia
stood at USD 19.3 billion.
Under the India–Australia ECTA, India granted preferential market access on 70.3% of its tariff lines,
covering 90.6% of trade value, while Australia granted preferential market access on 100% of its tariff
lines, corresponding to 100% of imports from India. Of this, 98.3% of tariff lines became duty-free
immediately upon implementation, while the remaining 1.7% (113 tariff lines) are being phased out over
five years. From 1 January 2026, all Indian exports are eligible for zero-duty market access into Australia.
Sectoral gains under the ECTA have become more broad-based, with notable growth in exports across
textiles, pharmaceuticals, chemicals, and agricultural products. On the import side, the Agreement
continues to facilitate access to essential raw materials such as base metals, raw cotton, chemicals and
fertilisers, and pulses, which are critical for India’s manufacturing and industrial sectors. This
complementary trade structure has strengthened supply chain resilience and supported domestic value
addition.
A major milestone in bilateral cooperation was achieved with the signing of the Mutual Recognition
Arrangement (MRA) on Organic Products between India and Australia on 24 September 2025. The MRA
facilitates seamless trade in organic products by recognising each other’s certification systems, thereby
reducing duplication, cost, and time for exporters. This step has strengthened cooperation in the organic
sector and enhanced transparency and trust in organic trade practices.The Agreement has emerged as a key pillar of bilateral engagement, delivering tangible benefits for
businesses, MSMEs, workers, and consumers in both countries. As India and Australia commemorate four
years of the Ind-Aus ECTA, both sides reaffirm their commitment to expanding trade, strengthening
supply chains, promoting investment partnerships, and advancing the shared objective of taking the
bilateral economic partnership to even greater heights.
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Abhishek Dayal/ Garima Singh/ Ishita Biswas
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