New negotiations on a comprehensive economic pact and investment treaty aim to strengthen commercial links between the two countries
Australia and India are working towards a new framework to deepen trade and investment ties, with negotiations under way on a Comprehensive Economic Cooperation Agreement (CECA) and a Bilateral Investment Treaty (BIT).
Indian Commerce and Industry Minister Piyush Goyal said on September 25 that the two countries were pursuing both agreements as part of efforts to expand two-way trade and provide greater certainty for investors.
The proposed CECA would build on the Australia-India Economic Cooperation and Trade Agreement (ECTA), which entered into force in December 2022. The existing pact removed or reduced tariffs on a large share of goods traded between the two countries but left several areas, including broader services access and investment protection, outside its scope.
A renewed investment treaty could address some of these gaps by establishing clearer protections for companies investing across borders. The previous Australia-India investment treaty, signed in 1999, was terminated in 2017 as India reviewed its investment-treaty policy. However, a 15-year protection period for eligible investments made before termination remains in effect until March 2032.
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The Lowy Institute has argued that the two agreements need to work together, particularly as both countries seek to expand industrial cooperation
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Areas such as critical minerals, technology, energy, manufacturing and advanced industries could provide opportunities for companies to operate across both markets
Bilateral economic ties have expanded in recent years. Australian government figures put two-way trade in goods and services at A$54.4 billion in 2024-25, making India Australia’s fifth-largest trading partner.
The push for deeper economic integration comes alongside expanding strategic cooperation. During their July 2026 annual summit, Australian Prime Minister Anthony Albanese and Prime Minister Narendra Modi agreed to strengthen defence, maritime security and other areas of the bilateral partnership.
The next phase of negotiations will determine whether Canberra and New Delhi can translate their growing strategic relationship into a more comprehensive economic framework.
