(MENAFN- KNN India) New Delhi, Dec 30 (KNN)
The trade agreement between India and Australia has proven highly advantageous for key sectors such as engineering goods, electronic products, and pharmaceuticals, experiencing a substantial increase in export volumes, highlighted Ministry of Commerce on Friday.
According to an official presentation, Indian exports to Australia along preferential lines recorded a substantial 17.8 per cent year-on-year increase, reaching USD 1.58 billion in the period of April-October 2023.
The term "preferential lines" denotes the privileged access granted through duty cuts; a key component of trade agreements inked between nations to facilitate smoother market access.
Breaking down sector-specific exports from India to Australia along preferential lines, the pharmaceutical industry emerged as a standout performer, witnessing a remarkable 52 per cent year-on-year surge in the first seven months of the current fiscal year.
Additionally, cereal preparation experienced a notable increase of 37 per cent during the same period.
On the import side, Australia experienced heightened demand for pulses, fruits, and vegetables from India during the April-October 2023 period within the framework of preferential lines.
The overall landscape of merchandise exports from India to Australia depicted a robust growth of 14 per cent year-on-year during April-November 2023.
In contrast, imports from Australia to India declined by 19 per cent over the same period, as per the official presentation.
"This is one of the FTA (Free Trade Agreement) that was done on comparative advantages, and industry has been leveraging it. There are early shoot signs on export growth in the areas where there were preferential tariffs," Rajesh Agrawal, Additional Secretary, Commerce Ministry, said on Friday.
The Economic Cooperation and Trade Agreement (ECTA) between India and Australia, which commenced on December 29, 2022, has now marked its one-year anniversary.
Presently, both nations are actively engaged in discussions to augment the existing agreement, aspiring to evolve it into a Comprehensive Economic Cooperation Agreement (CECA).
Commenting on the ongoing negotiations, Agarwal stated,
"Talks to expand the existing trade pact with Australia are progressing well. We expect to have some negotiations on rules of origin in January 2024. Have to work out detailed product specific rules so that takes time. It should be done sooner than later."
(KNN Bureau)
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