INDIA-AUSTRALIA TRADE: ECONOMY

NEWS: After 2 years of India-Australia trade deal, export utilisation reaches 79%

WHAT’S IN THE NEWS?

The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has significantly boosted bilateral trade, with India and Australia working towards deeper economic integration through the Comprehensive Economic Cooperation Agreement (CECA), targeting a trade value of AUD 100 billion by 2030.

 

Ind-Aus ECTA Success

  • Bilateral trade increased from USD 12.2 billion (2020-21) to USD 26 billion (2022-23).
  • In 2023-24, trade moderated to USD 24 billion, with India's exports growing by 14%.

Trade Momentum

  • From April-November 2024, merchandise bilateral trade reached USD 16.3 billion.
  • Export utilization: 79%, Import utilization: 84%, reflecting successful implementation.

Sectoral Growth

  • Key sectors like textiles, chemicals, and agriculture grew.
  • New product exports include gold studded with diamonds and turbojets.
  • Imports of raw materials like ores, cotton, and wood have supported Indian industries.

Future Prospects

  • India and Australia are working on the Comprehensive Economic Cooperation Agreement (CECA), aiming to further strengthen economic ties.
  • Ten formal rounds of discussions have been held for CECA.

Target for 2030

  • The trade target between India and Australia is AUD 100 billion by 2030.

Source: https://indianexpress.com/article/business/india-australia-trade-deal-export-utilisation-9750499/