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

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.