Source: The post is based on the article “India Australia Economic and Cooperation Trade Agreement comes into force” published in PIB on 29th December 2022
What is the News?
The India-Australia Economic and Cooperation Trade Agreement (Ind-Aus ECTA) has come into effect.
What is the India-Australia Economic and Cooperation Trade Agreement (Ind-Aus ECTA)?
How will the agreement benefit both countries?
Australia is largely a raw material and intermediate-producing country. Hence, India will get cheaper raw materials from Australia which will not only make us more competitive globally but also enable us to serve Indian consumers better; enabling us to provide more quality goods at more affordable prices.
On the other hand, Australia, which is largely dependent on imports will also benefit hugely as they will soon start seeing a lot more finished goods coming in from India, providing a huge amount of work and job opportunities in both goods and services, provided by Indian talent.
The agreement will also eliminate double taxation on IT services, which were making us less competitive and making us less profitable in the IT sector.