India-Australia ECTA Completes Four Years As Bilateral Trade Climbs To $24.1 Billion

The India-Australia Economic Cooperation and Trade Agreement (ECTA) has completed four years since its signing, with bilateral trade between the two countries rising to USD 24.1 billion in 2024-25 and India’s exports to Australia more than doubling over the period, according to the Ministry of Commerce and Industry. Signed on April 2, 2022, the agreement has steadily deepened economic ties by improving market access, lowering trade barriers and widening opportunities for businesses and workers on both sides.

India’s exports to Australia have grown from USD 4 billion in FY 2020-21 to USD 8.5 billion in FY 2024-25, while export growth in 2024-25 alone stood at 8 percent over the previous year. In FY 2025-26, up to February, total trade between the two countries stood at USD 19.3 billion, indicating continued momentum in the relationship.

Under the ECTA, India provided preferential market access on 70.3 percent of its tariff lines, covering 90.6 percent of trade value, while Australia extended preferential market access on 100 percent of its tariff lines, corresponding to 100 percent of imports from India. Of these, 98.3 percent of tariff lines became duty-free immediately when the agreement was implemented, while the remaining 1.7 percent, or 113 tariff lines, were placed on a five-year phase-out schedule. From January 1, 2026, all Indian exports have become eligible for zero-duty market access into Australia.

The gains from the trade pact have also become more broad-based across sectors. India has seen stronger export performance in textiles, pharmaceuticals, chemicals and agricultural products, while the import side has helped ensure access to key raw materials such as base metals, raw cotton, chemicals, fertilisers and pulses. According to the government, this complementary trade pattern has supported supply-chain resilience and domestic value addition.

A further boost to bilateral cooperation came with the signing of a Mutual Recognition Arrangement on Organic Products on September 24, 2025. The arrangement allows India and Australia to recognise each other’s organic certification systems, reducing duplication, cutting compliance costs and making trade in organic products more seamless for exporters.

The government said the ECTA has emerged as a major pillar of India-Australia economic engagement, delivering benefits to businesses, MSMEs, workers and consumers in both countries. As the agreement enters its fifth year, both sides have reiterated their intent to deepen trade, strengthen supply chains and expand investment partnerships.

Reference: PIB