NEW DELHI: India’s IT sector will be the biggest gainer from the free trade agreement (FTA) between India and Australia as IT services form a major part of the economy, commerce minister Piyush Goyal said on Tuesday after Parliament Down Under approved the FTA.
Besides this, the pharmaceutical sector will also benefit from the pact as medicines will get fast approval under the agreement, noted Goyal. “This is the first time in Australia’s history where they are giving 100% tariff lines with most lines on entry into force and 113 lines within a period of five years,” Goyal added.
While this India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) has already got Cabinet approval in India, it needed ratification by the Australian parliament before its implementation. Goyal while briefing media here said the Australian government will now take approval from their executive council. He said these FTAs are quickly doable. Both countries signed this FTA in April this year.
The FTA, once operational, will provide duty-free access to the Australian market for over 6,000 broad sectors of India including textiles, leather, furniture, jewellery and machinery. Goyal said high-income workers were eagerly waiting for the pact to be able to sell to high-income earners in Australia. Under this agreement, Australia is offering zero-duty access to India for nearly 96.4% of exports (by value) from day one. It covers many products that currently fall into the category of 4-5% customs duty in Australia.
As per the commerce ministry data, India’s goods exports to Australia stood at $8.3 billion and imports were recorded at $16.75 billion in FY22. Goyal said this pact will boost bilateral trade from the current $27.5 billion to $45-50 billion in the next five years.
One of the major highlights of the FTA is the offer of Visas to Indian chefs and yoga teachers. Meanwhile, every child who visits Australia for further studies will also be given an opportunity to work there under this pact depending on the student’s educational level.