Australia to Grant Duty-Free Access to All Indian Exports from January 1, 2026

By Admin

30 Dec, 2025

Major Boost to India–Australia Trade Relations
Australia will extend duty-free access to 100% of Indian exports starting January 1, 2026, under the India–Australia Economic Cooperation and Trade Agreement (ECTA). The announcement was made by Union Minister for Commerce and Industry, Piyush Goyal, marking a significant milestone in bilateral trade relations between the two nations.

Elimination of Duties Across All Tariff Lines
With this move, duties will be eliminated across all Australian tariff lines for Indian goods. This development is expected to open fresh opportunities for labour-intensive sectors and significantly enhance India’s export competitiveness in the Australian market. Exporters across multiple industries are set to benefit from simplified and cost-effective market access.

ECTA’s Impact Since 2022
Since ECTA came into force on December 29, 2022, it has delivered sustained export growth, deeper market access, and stronger supply-chain resilience. Over the past three years, the agreement has played a key role in strengthening economic ties. India’s exports to Australia grew by 8% in 2024–25, contributing to an improved trade balance and benefiting exporters, MSMEs, farmers, and workers.

Strong Performance Across Key Sectors
Significant gains have been recorded in manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewellery. Notably, gems and jewellery exports rose by 16% during April–November 2025. Agricultural exports also witnessed broad-based growth, with sharp increases in fruits and vegetables, marine products, spices, and exceptional growth in coffee exports.

Strategic Importance Amid Global Trade Shifts
The ECTA aims to deepen trade and investment ties by progressively eliminating tariffs, simplifying market access, and supporting supply-chain integration. Its importance has grown as India looks to diversify export destinations amid recent strains in trade relations with the United States.

Looking Ahead: ECTA as a Regional Anchor
While India and Australia continue negotiations toward a Comprehensive Economic Cooperation Agreement (CECA), ECTA remains a key anchor of India’s economic engagement in the Indo-Pacific region. The move toward complete duty-free access from 2026 underscores the long-term commitment of both countries to building a resilient, mutually beneficial trade partnership.