India (Commonwealth) _ Based on data from the commerce ministry, India’s exports to Australia increased by 64.4% year over year to US$643.7 million in November, propelled by strong growth in industries like textiles, chemicals, and agricultural items.
Despite this encouraging growth, India’s total merchandise exports fell 5.21% year over year to US$ 5.56 billion between April and November of 2024–2025. Since its implementation on December 29, 2022, the Economic Cooperation and Trade Agreement (ECTA) has given Indian exporters more access to markets and enhanced prospects for farmers and micro, small, and medium-sized businesses (MSMEs).
The agreement would create jobs and increase exports by 14% in 2023–2024, according to Commerce and Industry Minister Mr. Piyush Goyal.
By tripling bilateral merchandise trade from US$12.2 billion in 2020–21 to US$26 billion in 2022–23, the ECTA has greatly improved commercial relations between Australia and India. However, in 2023–2024, global trade dropped to US$24 billion. With total bilateral trade surpassing US$ 16.3 billion from April to November 2024, the current fiscal year demonstrates ongoing growth.
Effective implementation of the agreement has also resulted in the two nations exchanging preferential import data. Goyal pledged to reach the AU$100 billion trade goal by 2030, emphasizing the expansion of exports into new markets like turbojets and gold encrusted with diamonds while acknowledging the potential for advancement in engineering and technology.
On the second anniversary of the signing of the India-Australia Economic Cooperation and Trade Agreement (ECTA), Commerce Minister Piyush Goyal stated that the free trade agreement between India and Australia has been a “landmark” agreement that has expanded market access for Indian exporters and allowed exports to grow by more than 14% in 2023–2024.
In a post on X, he stated, “This historic agreement has created multiple job opportunities, expanded opportunities for MSMEs and farmers, and increased market access for Indian exporters.” On April 2, 2022, India and Australia signed a free trade agreement (FTA), which became effective on December 29, 2022.
According to him, the deal also provided a “notable boost” in business and travel services, IT/ITeS, and work holiday and post-study work visas.
Since its signing, bilateral merchandise trade has more than doubled, increasing from $12.2 billion in 2020–21 to $26 billion in 2022–23. However, overall commerce decreased to $24 billion in 2023–24, with a 14% increase in Indian exports to Australia. Strong momentum is still evident in the current fiscal year. According to a statement from the ministry of commerce, the total value of bilateral merchandise trade between April and November 2024 was $16.3 billion.
Only three months after the FTA went into effect, India’s merchandise exports to Australia in 2022–2023 were $6.95 billion, according to government figures. In FY23, India imported $19 billion worth of goods from Australia. India’s product exports to Australia increased 14.23% year over year to $7.94 billion in the subsequent fiscal year (2023–24).
It marked the first full fiscal year following the FTA’s operationalization. In contrast, Australian imports decreased by around 15% to $16.15 billion during the same year (FY24).
The start of the exchange of preferential import data between the two nations demonstrates the successful execution of the agreement in 2023. According to the figures, 79% of exports and 84% of imports are used, the ministry stated in the statement.
According to the statement, the India-Australia Economic Cooperation and Trade Agreement, also known as the Ind-Aus ECTA, is demonstrating how complementary the two economies are. It stated that “the Ind-Aus ECTA has greatly advanced trade ties, strengthening the foundation of their economic partnership and opening up new opportunities for MSMEs, businesses, and employment in both nations.”
Important industries like textiles, chemicals, and agriculture have experienced significant expansion, and new export lines like turbojets and gold encrusted with diamonds demonstrate the diversity made possible by the agreement, it stated.
India’s industries have been fueled by imports of vital raw resources like cotton, metalliferous ores, wood, and wood products, which has contributed to the partnership’s win-win nature, it continued. It stated that there is potential for expansion in fields like engineering and electronics.
Building on this achievement, the Comprehensive Economic Cooperation Agreement (CECA) between Australia and India is currently underway, with ten official rounds and intersessional negotiations completed thus far.
