New Delhi: The India-Australia Economic Cooperation and Trade Agreement has proved to be beneficial in increasing market access for previously untapped products between the two nations and has significantly bolstered two-way shipments, said a senior official on Friday.
During the period from April to November 2023, India witnessed a commendable 14% YoY growth in exports to Australia, touching a total value of $5.87 billion. This achievement is particularly significant due to the overall decline in India’s exports during the same period. Among the sectors that became major beneficiaries of the agreement, pharmaceuticals, engineering goods, electronics, and textiles stood out prominently.
Within the April-October span of the current fiscal year, India observed a 7% increase in engineering goods exports to Australia, although the overall exports in this category were lower compared to the previous year. Furthermore, India’s drug and pharmaceutical exports to Australia experienced a remarkable surge of 22%, surpassing the overall growth rate of 8%. Additionally, electronics goods exports rose by an impressive 31%, while Australia witnessed a substantial growth of 106% in this sector.
Rajesh Agrawal, Additional Secretary at the Department of Commerce, stated, “We are excelling in our trade relations with Australia in comparison to the rest of the world.” Agrawal further explained that the sectors demonstrating superior export growth to Australia would serve as a blueprint for future trade discussions with countries like the United Kingdom and the European Union.
With regards to Australia, Agrawal acknowledged that the country has similarly benefited from the agreement, despite unfavourable statistics due to India’s reduced import of coal. From April to November, India’s imports from Australia witnessed a 19% YoY decline, amounting to $11.14 billion.
The official also highlighted that India has witnessed encouraging early signs of export growth in areas where preferential tariffs are applicable. These positive indicators will undoubtedly guide India’s negotiations for future trade deals in other regions and countries.
In conclusion, the India-Australia Economic Cooperation and Trade Agreement has proven to be a game-changer for both nations, fostering increased market access, and boosting trade in various sectors. The agreement’s resounding success serves as a stepping stone for India to forge similar agreements with other promising regions, ensuring mutual growth and prosperity in the global market.
