India and Australia signed a momentous economic accord on Saturday, nearly ten years in the making, that would see tariffs lowered on more than 85 percent of commodities supplied to the South Asian nation as both governments seek alternate supply networks to offset an assertive China.
Prime Minister Narendra Modi said at the signing event that both countries will work together to ensure the supply chain’s resilience and stability in the Indo-Pacific region. Meanwhile, Australian Prime Minister Scott Morrison described the trade agreement’s investment as the government’s “single largest.”
According to an official statement from the Ministry of Commerce and Industry, the ECTA between India and Australia covers practically all of the tariff lines that India and Australia deal with.
Australia is one of India’s top 15 trading partners, with total trade worth roughly $20 billion in the year ended March 31.
In addition, India has agreed to lower tariffs on Australian wine. Tariffs on shipments with a minimum import price of $5 per bottle will be decreased to 100% from 150%, while tax on bottles costing $15 will be reduced to 75%.
“Under the #IndAusECTA agreement with Australia, more jobs will be created in the home furnishing, apparel, sportswear, automobile, textiles, pharmaceuticals, IT, and tourism sectors, benefiting the Indian people” stated Union Minister, Piyush Goyal.