NEW DELHI: The trade agreement signed between India and Australia on Saturday will help boost two-way commerce and investment between the countries, according to exporters.
Federation of Indian Export Organisations (FIEO) said the pact will benefit several sectors, including apparel, textiles, leather, footwear, gems, jewellery, engineering goods and pharmaceuticals, besides services.
Australia is at present India's largest export destination in the Oceania region and is amongst the top 15 export destinations, FIEO President A Sakthivel said.
Gems and Jewellery Export Promotion Council (GJEPC) Chairman Colin Shah said after successfully negotiating a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, India has secured preferential access for the sector in Australia.
Currently, India and Australia have a significant bilateral trade of USD 950 million for gems and jewellery commodities, he said.
Key commodities that are exported to Australia are gold jewellery (plain and studded) and polished diamonds.
The main commodities imported from Australia include precious metals -- gold and silver bars.
"We expect Australia to benefit from access to areas where India is a world leader, such as diamonds.
By providing preferential access for Indian gems and jewellery exports, the deal also makes it cheaper for Australian retailers to procure world-class jewellery crafted with finesse from Indian manufacturers," he said.
Shah also said he expects the agreement to boost bilateral gems and jewellery trade from USD 950 million at present to USD 1.5 billion.
India and Australia on Saturday signed an economic cooperation and trade agreement under which Canberra would provide duty-free access in its market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery.