India and Australia are engaged in unlocking the full potential of the India-Australia economic partnership and are discussing an “ambitious and balanced” Comprehensive Economic Cooperation Agreement (CECA), Union commerce minister Piyush Goyal said.
Goyal on Saturday concluded his two-nation visit after meeting Australian trade minister Don Farrell and skill minister Andrew Giles in Melbourne, a commerce ministry statement said on Sunday.
India and Australia are negotiating to expand the scope of their free trade deal –– Economic Cooperation and Trade Agreement (ECTA) –– that entered into force on December 29, 2022. The ECTA was signed on April 2, 2022.
Goyal –– who first travelled to Auckland (New Zealand) on November 5 –– visited Melbourne (Australia) on Saturday on his way back to New Delhi, holding bilateral discussions with Farrell and Giles.
“The constructive discussions focused on unlocking the full potential of the India–Australia Economic Partnership, including through an ambitious and balanced India–Australia Comprehensive Economic Cooperation Agreement (CECA),” the commerce ministry said in a statement.
During the meeting, the ministers reviewed the progress made under the CECA negotiations and discussed pathways to elevate bilateral trade and economic partnerships. The discussions covered a wide range of areas, including trade in goods, services, investment and mutually beneficial cooperation, it said.
{{/usCountry}}During the meeting, the ministers reviewed the progress made under the CECA negotiations and discussed pathways to elevate bilateral trade and economic partnerships. The discussions covered a wide range of areas, including trade in goods, services, investment and mutually beneficial cooperation, it said.
{{/usCountry}}Both sides reaffirmed their commitment to work constructively towards the early conclusion of a balanced and mutually beneficial CECA, building on the foundation of the India-Australia ECTA.
Goyal, accompanied by Farrell and Giles, also engaged with select business representatives from the Indian diaspora. The interaction highlighted opportunities for stronger commercial linkages and underscored the community’s role in advancing bilateral economic ties, the statement said.
In FY 2024–25, bilateral merchandise trade between India and Australia stood at $24.1 billion, with India’s exports registering a growth of 14% in 2023–24 and a further 8% in 2024–25, it said. With the ECTA, 96% of imports from India are now tariff free, rising to 100% by January 1, 2026. Similarly, over 85% of Australian goods exports by value to India are now tariff free, rising to 90% by January 1, 2026.
The ECTA has brought tangible benefits across several sectors, such as textiles, pharmaceuticals, chemicals, and agriculture. Exports on new lines, such as calcined petroleum coke, high-capacity diesel generating sets, and air liquefaction machinery saw expanding trade opportunities facilitated by the agreement. Sectors such as electronics and engineering hold significant potential for future exports, offering promising prospects for further growth and innovation, a commerce ministry official said.
India is importing key raw materials, such as metalliferous ores, cotton, wood and wood products that have supported the growth of Indian industries, solidifying the mutually beneficial and complementary nature of the partnership, he added.