- Mahadharani Vijay

ECTA completes four years, increasing India-Australia trade, exports, market access and supply chain cooperation across key sectors and industries.

The India-Australia Economic Cooperation and Trade Agreement (ECTA) has been in effect for four years, marking an important milestone in the two countries' expansion of bilateral trade and supply chain cooperation.

The Ministry of Commerce and Industry claims that the agreement, which was signed on April 2, 2022, has been crucial in increasing trade volumes, enhancing market access and strengthening industrial ties under the trade agreement. By facilitating the easier flow of goods and essential inputs between sectors, the agreement has also helped supply chains become stronger.

From USD 4 billion in 2020–21 to USD 8.5 billion in 2024 to 2025, India's exports to Australia have more than doubled since the agreement was adopted. In 2024 to 25, bilateral trade totaled USD 24.1 billion and exports increased by 8% year over year. Businesses on both sides have been able to increase trade prospects thanks to the ECTA's privileged access across a wide range of tariff lines. While India has offered reductions on more than 70% of tariff lines, covering more than 90 percent of trade value, Australia has allowed access to all of its tariff lines for Indian goods.

As the remaining tariff lines are phased out under the agreement, almost all Indian exports to Australia will be subject to zero duty starting on January 1, 2026. The advantages are now more widely distributed across industries, with textiles, chemicals, pharmaceuticals and organic products seeing the strongest export growth. In terms of imports, India now has greater access to vital basic raw materials that are necessary for local manufacturing and supply chain continuity, such as metals, raw cotton, fertilizers and pulses.

The establishment of a Mutual Recognition Arrangement for organic products in September 2025 was another major development in bilateral cooperation. The arrangement is anticipated to lower compliance expenses and streamline certification procedures, increasing the effectiveness of trade in agricultural products. According to the government, the deal has strengthened long-term supply chain stability and value creation while producing noticeable benefits for companies, MSMEs and employees.

Thus, Business Fortune is of the view that the trade agreement is strengthening India-Australia trade and supply chain growth.

About The Author

Mahadharani Vijay is a writer specializing in Lifestyle, Electric and Concept Cars, Science and Technology, and Markets, with a focus on transforming emerging trends and innovations into clear, engaging, and accessible stories for professionals and broader audiences.