* As India and Australia continue negotiations for a broader Comprehensive Economic Cooperation Agreement (CECA), the full tariff elimination under ECTA is being viewed as a significant milestone
* It reinforces the long-term commercial partnership between the two countries and sets the stage for deeper economic integration in the years ahead
Indian exporters are set to receive a major boost as Australia will extend complete duty-free access to all Indian goods from January 1, 2026, under the India–Australia Economic Cooperation and Trade Agreement (ECTA). The move marks the final phase of tariff liberalisation under the pact and eliminates 100 per cent of Australian tariff lines for Indian exports.
Union Commerce and Industry Minister Piyush Goyal announced the development in late December 2025, coinciding with the third anniversary of the agreement’s implementation. Signed in April 2022 and operational since December 29 that year, ECTA was designed as an “early harvest” trade agreement to deliver faster gains while paving the way for a more comprehensive partnership.
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According to the Piyush Goyal, Union Commerce and Industry Minister, the agreement has already generated measurable benefits for India’s export ecosystem
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Since coming into force, Indian shipments to Australia have maintained steady growth, rising by around 8 per cent during the 2024–25 financial year
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The deal has also contributed to a significant improvement in India’s trade balance with Australia, with the trade deficit narrowing by over 42 per cent—from $12.06 billion in 2022–23 to $6.9 billion in 2024–25
Manufactured and value-added products have been at the forefront of this export growth. Strong performances have been recorded in sectors such as chemicals, textiles, pharmaceuticals, plastics and petroleum products. Gems and jewellery exports have also gained momentum, posting a 16 per cent increase between April and November 2025. On the agricultural front, exports of fruits and vegetables, marine products and spices have expanded sharply, with coffee exports witnessing a notable surge.
The agreement has also delivered procedural and regulatory advantages. A Mutual Recognition Arrangement on organic products, signed under ECTA, is expected to ease certification requirements, lower compliance costs and enable smoother entry for Indian organic produce into the Australian market.
Officials note that the complete removal of tariffs will particularly benefit labour-intensive industries and micro, small and medium enterprises, enhancing their price competitiveness and market reach. Beyond tariff cuts, the pact has improved supply-chain resilience and provided exporters with clearer and more predictable trade rules.
