Starting January 1, 2026, Australia will grant duty-free access to all exports from India as part of the India-Australia Economic Cooperation and Trade Agreement (ECTA), according to a statement made by Commerce and Industry Minister Piyush Goyal. This significant move is designed to open up new avenues for Indian industries, particularly those that are labor-intensive. Goyal shared this news on his social media platforms, emphasizing that "from this date, all Australian tariff lines will be at zero duty for Indian exports," which is expected to create fresh opportunities in various sectors.
In the past three years, the ECTA has played a crucial role in facilitating consistent growth in exports, enhancing market access, and bolstering supply chain resilience. This development is particularly beneficial for Indian exporters, micro, small, and medium enterprises (MSMEs), farmers, and the workforce. For example, India’s exports to Australia saw an impressive increase of 8% during the fiscal year 2024-25, thereby contributing positively to India’s trade balance.
The minister highlighted notable gains across several sectors, including manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems & jewelry. Remarkably, exports of gems and jewelry surged by 16% between April and November 2025. Additionally, agricultural exports experienced widespread growth, with significant rises in the export of fruits, vegetables, marine products, spices, and particularly strong expansion in coffee exports.
The ECTA, which officially came into effect on December 29, 2022, is aimed at strengthening trade and investment relationships between India and Australia. It seeks to progressively eliminate tariffs, streamline market access, and promote supply chain integration at a time when India is looking to diversify its export markets, especially following some recent strains in trade relations with the United States.
Goyal also mentioned that negotiations are ongoing for a Comprehensive Economic Cooperation Agreement (CECA) between the two countries, indicating that the ECTA will continue to serve as a foundational element of India’s economic engagement in the Indo-Pacific region. This proactive approach suggests that both nations are keen on deepening their economic ties and exploring mutual benefits in trade.
