Australia will remove tariffs on 100% of Indian exports starting January 1, 2026, under the India-Australia Economic Cooperation and Trade Agreement (ECTA). This step is expected to create new opportunities for Indian exporters and strengthen bilateral trade.
Commerce Minister Piyush Goyal confirmed the move, highlighting that it will particularly benefit MSMEs and labour-intensive industries, giving them easier access to the Australian market. He said the step will enhance competitiveness and strengthen supply-chain links between the two nations.
The ECTA, which came into effect in December 2022, has already boosted Indian exports to Australia, which grew by around 8% in 2024-25. Key export sectors benefiting from the agreement include manufacturing, chemicals, textiles, plastics, pharmaceuticals, and petroleum products. Notably, gems and jewellery exports rose 16% between April and November 2025.
Agricultural exports, such as fruits, vegetables, marine products, spices, and coffee, have also seen growth. To simplify trade, India and Australia signed a Mutual Recognition Arrangement (MRA) on organic products, easing movement of certified goods.
Trade analysts see the zero-tariff move as a significant step for Indo-Australian economic cooperation, helping Indian products become more price-competitive in Australia. It also aligns with India’s broader goal to expand its presence in global markets and strengthens ties in the Indo-Pacific region.
The tariff elimination under ECTA may pave the way for a broader trade agreement covering services, investment, and regulatory standards, further deepening economic engagement between the two countries.
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