Australia India Free Trade Agreement: What Does Australia Trade With India?

Wool is Australia’s second-largest export commodity and together coal and wool account for 66 percent of Australia’s total exports to India. Other exports such as grains and pulses, dairy products, and processed foods occupy much smaller niche markets.

In 2019, Australia’s exports to India amounted to US$15.3 billion. The main products that Australia exported to India were coal briquettes (US$12.1 billion), gold (US$604 million), and petroleum gas (US$419 million).

On the other hand, the major items that constitute Indian exports to Australia are Gems, pearls, and jewelry. Chemicals and their by-products. Leather, leather goods, footwear, and travel goods.

India and Australia will sign an enhanced partnership agreement on Saturday, April 2, to boost trade and investment ties.

Under the agreement, Australia will provide 100 percent market access for all Indian goods over a period of five years.

From the first day of the implementation of the trade pact, 95 percent of the goods will attract lower duty.

All labor-intensive sectors such as apparel, footwear, and jewelry will get zero-duty access from day one, government officials said. Most of the goods exported to Australia attract a 5 percent duty.

India will get liberalized norms in the services sector that will cover more than 100 sub-sectors.