As of December 29, the free trade agreement between India and Australia will be in effect, helping to roughly double the bilateral trade to USD 45–50 billion in around five years.
The Australian Minister for Trade and Tourism, Don Farrell, said in a statement on Wednesday, "The (Anthony) Albanese government welcomes confirmation today that the Indian Government has completed its domestic requirements to enable implementation of the Australia-India Economic Cooperation and Trade Agreement (ECTA).
It stated that starting on December 29, 2022, this trade agreement will bring additional market access opportunities for Australian enterprises and consumers.
The agreement, which was signed on April 2, would give Indian exporters duty-free access to the Australian market for over 6,000 different industries, including textiles, leather, furniture, jewellery, and machinery.
Textiles and clothes, a few agricultural and fish products, leather goods, furniture, sporting goods, jewellery, machinery, and electrical items are just a few labour-intensive industries that would greatly benefit.
According to the agreement, Australia will grant zero-duty access to India starting on day one for roughly 96.4% of exports (by value). This applies to a wide range of goods that are now subject to a 4%–5% customs charge in Australia.
In 2021–2022, India's exports of goods to Australia totaled USD 8.3 billion, while its imports totaled USD 16.75 billion.