Duties on all tariff lines to be eliminated by Australia under the landmark India-Australia Economic Cooperation and Trade Agreement: Goyal
Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Mr Piyush Goyal, has said that duties on 100 per cent tariff lines would be eliminated by Australia under the landmark India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA). He was addressing a press conference on the ECTA following the approval of the agreement by the Australian Parliament.
Mr Goyal said the ECTA would give a big boost to several sectors of the economy, especially textiles, gems and jewellery and pharmaceuticals. He noted that the agreement would also open new opportunities for the service sector in India and would immensely benefit students by offering them an opportunity to work in Australia. An annual visa quota of 1,800 is to be instituted for Indian yoga teachers and chefs.
ECTA is the first trade agreement of India with a developed country after more than a decade. It encompasses cooperation across the entire gamut of bilateral, economic and commercial relations between the two friendly countries. It is expected that with this agreement, total bilateral trade will cross US$ 45-50 bn in 5 years from the existing US$ 31 bn. India’s merchandise exports is likely to increase by $10 billion by 2026-27.
Around 96% of Australia’s exports are raw materials and intermediate products which will allow many Indian industries to get cheaper raw materials and make them competitive. Investments will help increase the presence of higher value products of advanced technology, thereby promoting vertical movement in the value chain (engineering, electronics, pharmaceuticals & medical devices). Another major gain is in the pharmaceuticals sector, where drugs approved in other developed jurisdiction will get fast-track approval for patented, generic and bio-similar medicines, said a release.
Source: Exim News Service: New Delhi, Nov. 24