India and Australia are actively engaged in discussions aimed at strengthening their economic partnership, with a focus on trade in goods, services, and investment opportunities. Commerce and Industry Minister Piyush Goyal of India met with his Australian counterpart, Don Farrell, in Melbourne to review the progress of negotiations for the second phase of the Comprehensive Economic Cooperation Agreement (CECA). Both sides have reaffirmed their commitment to concluding a balanced and mutually beneficial CECA at the earliest.
The meeting involved a thorough review of the ongoing CECA negotiations, with discussions focusing on ways to enhance bilateral trade and investment links. Ministers from both countries explored opportunities to expand cooperation across various sectors, including emerging industries.
The first phase of the trade pact between India and Australia, known as the Economic Cooperation and Trade Agreement (ECTA), came into effect in December 2022. This agreement marked a significant milestone in the economic engagement between the two nations. Under the ECTA, over 85% of Australian goods exports to India became tariff-free immediately, with the figure set to rise to 90% by January 1, 2026. Similarly, 96% of imports from India are now tariff-free, increasing to 100% by January 1, 2026.
In the fiscal year 2024-25, bilateral merchandise trade between India and Australia reached $24.1 billion. India's exports to Australia experienced substantial growth, with a 14% increase in 2023-24 and a further 8% increase in 2024-25. Both India and Australia are confident that the early conclusion of the CECA will create new opportunities for businesses and contribute to stronger strategic and economic ties between the two Indo-Pacific partners.
The CECA negotiations aim to build upon the foundation laid by the ECTA to capitalize on the potential for closer economic ties. The discussions encompass a wide range of areas, including trade in goods, services, investment, and mutually beneficial cooperation. India is Australia's fifth-largest trading partner, with two-way trade in goods and services valued at $49.1 billion in 2023. The Comprehensive Economic Cooperation Agreement (CECA) is expected to further boost trade ties, with the goal of exceeding US$70 billion in the coming years.
Besides government-level discussions, Piyush Goyal also engaged with business representatives from the Indian diaspora, highlighting opportunities for stronger commercial linkages and underscoring the community's role in advancing bilateral economic ties. Both countries are also focusing on key sectors identified as "superhighways of growth,” including clean energy, education and skills, agribusiness, and tourism.
