News: India and Australia have recently signed a trade agreement called the India-Australia Economic Cooperation and Trade Agreement or IndAusECTA.
What does this mean?
This deal will eliminate tariffs on more than 85% of Australian goods entering India and almost all of Indian goods entering Australia.
Australian exports to India of sheep meat, wool, coal, alumina, metallic ores, including manganese, copper, nickel and critical minerals will be tariff free.
Likewise, for Indian exports to Australia of jewellery, cosmetics, bed linen, clothing, paints, automotive parts and furniture.
Australia will get access to the fast and rapidly growing Indian market, while Indian companies will enjoy cheap supply of energy, raw material and intermediate goods.
In India, this will create at least 1 million jobs in labour-intensive sectors like textiles, leather and pharmaceuticals.
India’s concern about its agriculture and dairy sectors are also respected.
Will it also open the door to movement of people?
Through IndAusECTA, Australia will help more Indians gain education and experience. Australia will increase post-study work visa durations for Indian graduates.
It will ensure that Australia’s service providers remain competitive compared to India’s future trading partners. Australia will also eliminate double taxation on IT firms.
A strong and prosperous Indo-Pacific is in the world’s interest. IndAusECTA is our unity ticket for a better future together.
Source: This post is created based on the article “A trade deal that will create jobs” published on 10/April/2022 in Times of India.