The Economic Cooperation and Trade Agreement between India and Australia, which came into effect on  December 29, 2022. The two nations’ business relations as well as the full range of goods and services are  set to profit from this agreement, which is the first trade agreement between India and a developed  nation in recent memory.  

Shri Sanjay Garg , President NITMA ,expressed his gratitude to the Honorable PM Shri Narendra Modi Ji  and Honorable Minister for Commerce & industry & Textiles Shri Piyush Goyal Ji for the historic  accomplishment. Shri Garg claimed that this agreement will have a significant positive impact on the  extremely labor-intensive textile and apparel industry. The cotton textiles value chain in the country,  which has begun to experience a shortage of high-quality cotton as a result of the increased demand, will  benefit from allowing the import of 51.000 MT of duty-free cotton from January 2023 and 419 MT of  duty-free cotton from 29 December to 31 December 2022 from Australia, he added.  

According to Shri Garg, the trade agreements with the UAE and Mauritius have already begun to provide  better results, while the agreement with Australia will give various Indian textile products, particularly  ready-to-wear clothing and home textiles, zero-duty market access. As the bilateral agreement is  anticipated to reach USD 45 to USD 50 billion in trade in the next five years as opposed to the existing  level of USD 25 billion, Shri Garg also stated that the treaty would tremendously benefit to bridge the  trade deficit of roughly USD 8.5 billion with Australia.  

According to the president NITMA , the removal of the 10% tariff barrier for exporting to Australia as well  as the 11.0% import charge on cotton will increase India’s textile and apparel industry’s competitiveness  on the world market. In a space of five to six years, he thought that expeditious FTA discussions with  Canada, the United Kingdom, and a few other nations would allow India to reach its target exports of USD  100 billion and the USD 350 billion total market size for textiles. He claimed that the programme has  provided the country’s textile and apparel sector, which is now experiencing a downturn due to the global  recession and slowing economy, a great morale boost.