Golden Opportunity for Australian-Indian exporters
The Australia-India Economic Cooperation and Trade Agreement (AIECTA) signed on 2 April signals a new phase of economic cooperation between Australia and India. The interim deal also indicates a possible step towards a full Free Trade Agreement.
What does this mean for you?
The benefits of this trade agreement extend across multiple sectors and industries. If you are a business exporting from India, you will be granted tariff free access to over 95 percent commodities in the Australian market. Export of several labour-intensive sectors including textiles and apparel, agricultural and fish, leather, footwear, jewellery, and selected pharmaceuticals will benefit from duty-free access to Australia. Meanwhile, Australian businesses will be able to benefit from diversified global supply chains and preferential access to a market of nearly one and a half billion customers. This includes reduced and/or elimination of tariffs for products including wine, barley, wool, coal and an extensive range of other products and services.
Such deals represent a golden opportunity for business looking to upscale or expand their international trade portfolio. It will allow businesses to tap into new industries where previously not economically viable due to high tariffs. Australia has a reputation for producing highest quality products, seeing boosts in the manufacturing sector. Over the next 20 years, the fast-developing Indian economy will see high demand for many of Australia’s goods and services including agriculture, critical minerals, education and skills training, and healthcare. Likewise, the deal is a welcoming sign for Indian businesses looking to enter Australia, particularly amongst growing calls by the Australian Government for the need to diversify its trading partners.
Australian businesses will continue to have close ties with India. If you have any queries about how the AIECTA will impact your business, or if you’re interested to know how you can tap into its opportunities, contact our consultants at Smart Mango today.
Phone +61 2 7903 0543