India-Australia Trade Pact Turns 4, Bilateral Trade Hits $24B

• India–Australia trade reaches $24.1 billion in 2024–25
• Tariff cuts boost exports and market access significantly
• Pact strengthens supply chains and sectoral cooperation

The India-Australia Economic Cooperation and Trade Agreement has now been four years since it was signed, a major step in the economic ties between India and Australia. The agreement has, during this time, been instrumental in increasing bilateral trade, providing better market access, and creating opportunities for industry linkages at a deeper level between the two nations.

Implemented since April 2022, the trade agreement has resulted in a consistent annual increase in trade, with the figure of total bilateral trade estimated at $24.1 billion in 202425. India's shipments to Australia have more than doubled in this time, rising from about $4 billion in 202021 to around $8.5 billion, which demonstrates the strong growth trend and better access to the Australian market.

One important aspect of this accord is the decrease and removal of tariffs on most goods. Australia has given India easier access with around 100% of its tariff lines, while India has more than 70% of her tariff lines under concessions, with these lines accounting for more than 90% of trade value. Most Indian exports already have duty-free entry, the remainder of the tariffs will be phased out by 2026, this will be promotive for the competitiveness of Indian products.

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The accord has also encouraged diversity in the sectors involved leading to significant advances in textiles, pharmaceutical products, chemicals, and agriculture. India, on the other hand, has gained from import concession through better access to essential raw materials like minerals, metals, and fertilizers, thereby aiding domestic manufacturing and industrial activities.

This complementary trade framework has led to increased supply chain resilience and closer economic ties between the two countries. Besides, the mutual recognition arrangement on organic products has made trade between the two countries more efficient by lowering compliance costs and increasing confidence among exporters.

These measures demonstrate a trend toward deeper regulatory cooperation that goes hand in hand with the traditional tariff cuts. On the whole, the four-year celebration marks the agreement as a key pillar of India-Australia economic relationship. Both parties being determined to increase trade, investment, and supply chain collaboration, the agreement will serve as a vehicle for more growth and a stronger long-term bilateral economic cooperation.