India trade deficit with Australia down 40%
NEW DELHI: Country’s trade pact with Australia has boosted exports in several sectors of the Indian economy, including engineering goods, electronic products, and pharmaceuticals, as per the commerce ministry.The data showed country’s overall merchandise exports to Australia grew by 14% in April to November 2023, while imports from the country declined by 19% during the same period. The trade deficit with Australia during the period has also fallen by 39% to $5.3 billion.
According to the data, exports from India to Australia under preferential lines rose by 17.8 percent year-on-year, reaching $1.58 billion during the period of April to October 2023. However, exports of gems and jewellery reported a negative growth of 19%, while chemicals export also plummeted by 26% in April-October of 2023.
Preferential lines refer to preferential access given via duty cuts as part of trade agreements between nations. Among sector-wise Indian exports to Australia on preferential lines, the highest percentage increase was recorded in drugs and pharmaceutical products, which saw a significant rise of 52 percent in the first seven months of the current fiscal year, followed by a 37 percent surge in the export of cereals preparation during the same period.
Imports from Australia on preferential lines also recorded growth, particularly in pulses, fruits, and vegetables during April-October 2023. Rajesh Agrawal, Additional Secretary of the Commerce Ministry, noted that the India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into effect on December 29, 2022, has completed its first year and both the countries are trying to expand the existing pact into a more comprehensive “Comprehensive Economic Cooperation Agreement (CECA)”.