India’s exports to Australia grew by 8% during the 2024-’25 period. This helped improve India’s overall trade balance with the country, guided by official data. Analysts were of the view that Australia’s move to zero duty from January 2026 may accelerate this momentum. This is especially so as exporters seek alternatives to traditional markets facing higher trade barriers.
A little over 3 years back, in December 2022, the Economic Cooperation & Trade Agreement (ECTA) was signed. It aims to deepen trade and investment ties between the 2 countries. This is achieved by progressively eliminating tariffs. Besides this, it also simplifies market access and strengthens supply-chain integration.
Indian exporters are set to benefit from a major competitive edge in the Australian market. This is due to 100% of Australia’s tariff lines moving to zero duty. This is under the India-Australia ECTA from 1 January 2026. This step marks a crucial milestone in the bilateral trade pact. It is expected to significantly boost shipments, especially so from labour-intensive sectors. It comes at a time when India is actively diversifying its export destinations.
The complete elimination of Australian tariffs is likely to benefit many Indian export sectors. They are textiles, leather, engineering goods, gems & jewellery, besides processed foodstuffs. Even a marginal cost reduction can translate to higher volumes. Micro, small and medium enterprises (MSMEs) often tend to operate on thin margins. Also, lower landed costs in Australia may improve profitability. It may also make Indian products more competitive against global suppliers.
For Australia, this trade arrangement strengthens access to a stable and trusted sourcing partner. Meanwhile, Indian exporters benefit from deeper entry into a developed, high-income market that tends to move with predictable trade rules, besides strong consumer demand.
Marking the 3rd anniversary of the ECTA, Commerce and Industry Minister Piyush Goyal said that the agreement had moved beyond intent to deliver tangible results at the ground level. Sharing details on X (formerly Twitter), Goyal noted that the pact had translated into sustained export growth. This is, besides, deeper market access and stronger supply-chain resilience over the past 3 years. This benefits Indian exporters, MSMEs, farmers and workers.
According to the minister, multiple sectors have recorded strong gains under this trade agreement. This includes manufacturing, chemicals, textiles, plastics and pharmaceuticals. Petroleum products, gems & jewellery have also witnessed a notable rise in trade. The export sector of gems & jewellery alone grew by 16% between the 7 months from April to November 2025, as reflected in official figures.
Agricultural exports have emerged as an alternate bright spot. Indian fruits, vegetables, marine products and spices have found a growing market in Australia. Coffee exports registered particularly high growth. To ease compliance and reduce the costs of exports, both countries have signed a Mutual Recognition Arrangement for organic products. This makes way to permit smoother trade and reduces duplicative certification requirements.
India’s exports to Australia increased by 8% during the financial year 2024-’25. This helped in improving India’s overall trade balance with the country. This was shared in official data. Analysts said that the move to zero duty from January 2026 could accelerate this momentum. This was especially so as exporters seek alternatives to traditional markets facing higher trade barriers.
The timing makes it significant as India is increasingly seeking to diversify its export destinations. This is amidst strained trade ties with the U.S. The U.S. has been India’s largest trading partner. Indian exports to the U.S. have been subject to a 50% tariff. This has been so during the past 15 months since 27 August 2025. This prompted policymakers and businesses to seek more actively at markets such as Australia, Europe and parts of the Indo-Pacific.
Goyal was of the view that the ECTA continues to anchor India’s economic engagement in the Indo-Pacific. This was amidst negotiations that were in progress on a broader Comprehensive Economic Cooperation Agreement (CECA). He added that the pact aligns with the government’s Make in India initiative, besides the long-term vision of Viksit Bharat 2047. The minister said that together, India and Australia are building a future of shared prosperity and trusted trade.
