The Economic Cooperation and Trade Agreement (ECTA) with Australia has opened up new export sectors for India, including gold studded with diamonds and turbojets, while also ensuring access to key raw materials for the domestic industry, the ministry of commerce and industry said.

The ECTA, now two years old, has enabled diversification in bilateral trade. “Imports of essential raw materials, such as metalliferous ores, cotton, and wood products, have fuelled India’s industries, contributing to the win-win nature of this partnership,” the ministry said. Sectors such as electronics and engineering also hold significant growth potential.

Since the signing of ECTA, bilateral merchandise trade has more than doubled, rising to $26 billion in FY23 from $12.2 billion in FY21. While trade moderated to $24 billion in FY24, India’s exports to Australia grew by 14%. From April-November 2024, bilateral merchandise trade reached $16.3 billion, reflecting strong momentum.

Building on ECTA’s success, negotiations for the India-Australia Comprehensive Economic Cooperation Agreement (CECA) are underway. Ten formal rounds of discussions and inter-sessional meetings have been held so far.

A stocktake meeting for CECA was recently conducted in New Delhi from December 4-6, 2024, to review progress and chart the next steps. Both nations are committed to advancing economic integration with the goal of achieving AU$100 billion in trade by 2030, the ministry said.

The agreement has boosted India’s exports of IT and business services, which reached $1.4 billion in 2023. Commerce and industry minister Piyush Goyal highlighted this growth, along with improvements in business and travel services, in a post on X.

As part of the ECTA, post-study work visas and work holiday visas for Indians have been operationalised.

Australia began offering 1,000 work and holiday visas annually to Indian citizens starting October 1, 2024. The visa is available for individuals aged 18 to 30, allowing a 12-month stay with work opportunities to fund their trip. Australia also allows for second and third work and holiday visas after the first one expires on fulfilment of certain conditions.