India the new China | Aussie Stock Forums

On Thursday, the Australia-India Economic Cooperation and Trade Agreement enters into force. It is no surprise to me that India chose Australia as the first major economy in more than a decade with which to complete a trade agreement.
Indian consumers appreciate the high quality and assured safety of Australian products, and Indian students value the transformative opportunities our education system offers.

More broadly, our economic relationship is underpinned by a Comprehensive Strategic Partnership and Australia’s vibrant Indian diaspora, who are the living bridge between our countries.
Trade diversification is a central plank of the government’s trade policy strategy. And as I’ve said before, Australia is economically stronger when global trade flows freely. More trade is a key part of how we build the economic future Australia needs.

Deepening our trade and investment ties with India, one of the fastest growing major economies, strengthens our economic resilience. India’s youthful population, diversified economy and growth trajectory present significant opportunities for Australian businesses, including in education, agriculture, energy, resources, tourism, healthcare, financial services, infrastructure, science and innovation, and sport.

As a result of the trade deal, more than 85 per cent of Australian trade exports to India enter duty free. This will rise to 90 per cent in coming years. In addition, India’s high tariffs will be reduced substantially for sensitive products such as wine and almonds.

Australian exporters will benefit from two tariff cuts in quick succession; the first takes place on Thursday upon entry into force and the second on January 1 and annually thereafter.

Australian businesses are very much alive to the enormous trade diversification opportunities in an export market valued at more than $24bn last year.

Western Australia’s largest lobster exporter, Geraldton Fishermen’s Cooperative, has secured a distributor in India in anticipation of ECTA’s entry into force. ECTA secured elimination of India’s 30 per cent tariff on fresh rock lobster from day one and phased elimination of the 30 per cent tariff on frozen rock lobster by January 1, 2028.

The immediate elimination of India’s 30 per cent tariff on lamb and mutton will allow the Australian sheepmeat industry to benefit from the anticipated growth in demand in India for high-quality lamb and mutton. Roger Fletcher, from Fletcher International Exports said ECTA would enable the Australian supply chain to match specific sheepmeat cuts with market segments and cuisines in India, and thereby help diversify export markets.

From Thursday, tariffs on premium wine to India are slashed by half from 150 per cent to 75 per cent, dropping to 70 per cent on Sunday, and will phase down to 25 per cent across nine years.