The recently concluded India – Australia Economic Cooperation and Trade Agreement (ECTA) covers 90% of bilateral trade between both the countries, while India will benefit preferential access to 100% of its export products to Australia.
The flagging off ceremony of the export consignments from Tamil Nadu under ECTA was held on 29th December, 2022 at Ennore Adani Container Terminal in the presence of Mr. Israr Ahmed, Past Chairman, FIEO, Mr. Vishwas BN, ITS, Jt. DGFT, Chennai, Mr. Balaji, IRS, Addl. Commissioner of Customs, Chennai, Mr. Unnikrishnan AR, MD, Saint-Gobain India Pvt. Ltd., Mr. Milind Sangtiani, Container Terminal Head, Adani Ennore Container Terminal Ltd., and other senior officials from O/o. Zonal DGFT, FIEO, Ennore Port, and leading exporters to Australia. Saint-Gobain’s float glasses consignment to Australia flagged off during the function. Glasses and building materials will be getting Zero duty concession in Australia under ECTA.
Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner. India-Australia bilateral trade for both merchandise and services was valued at $27.5 billion in 2021. Even though India’s exports to Australia have considerably increased over the years, the scope for development still exists, as ECTA expected to enable Indian exporters to obtain preferential access to the untapped Australian market.
Mr. Israr Ahmed, Past Chairman, FIEO, said that implementation of ECTA from 29th December is expected to help Indian exporters, especially MSMEs to utilise opportunities in Australian market to its optimum potential. India’s strength in Pharma Products, Jewellery, Vehicles, Agricultural products including rice, Textiles & Garments, Handloom Products, Leather Products, Organic Chemicals, Engineering & construction materials including float glasses, spices, etc., can be leveraged by the exporters in the region to gain more share in Australia’s import basket.
Mr. Unnikrishnan AR, MD, Saint-Gobain, said that Australian customers prefer Indian products over Chinese, but Indian exporters need to adhere to delivery schedule and Quality to make use of FTA to our advantage.
According to FIEO, Textiles and Garments will gain immensely especially on the made-ups, apparel and garments along with opening of window for the handloom sector. Other segments which can gain larger market share within a short term from Tamil Nadu is Gems and Jewellery, Leather and non-leather footwear segment, Handicraft, Auto parts, Engineering products, etc. During FY21-22, export from Tamil Nadu to Australia was to the tune of USD 384 million and during the current financial year from April to October export from TN was 322 million USD and it is expected that during this year export from TN to Australia may cross USD 500 million.
HSN code wise import tariffs in Australia under ECTA has already been updated in http://www.indiantradeportal.in by FIEO including Rules of Origin criteria for getting duty benefits and required standards and certification requirements for Australian market.