Landmark trade agreement between India-Australia

Landmark trade agreement between India-Australia

A “landmark” moment for India- Australia happened as India-Australia signed a trade agreement Tuesday. The India-Australia Economic Co-operation and Trade Agreement (AI-ECTA) has been approved by the Union cabinet in India and it has been needed for same approval by Australian parliament to be in force.

India-Australia Economic Co-operation and Trade Agreement:

It is the first time in Australian history where the country giving 100 percent tariff lines immediately and 113 lines within a period of 5 years.

Piyush Goyal highlighted the areas that are going to be benefited from the deal as he underlined it being India’s first agreement of “such a kind with a developed country after a decade.

Union commerce and Industry minister Piyush Goyal has informed that with the India-Australia Economic Co-operation and Trade Agreement (AI-ECTA), many benefits and opportunities have been on hand for India.

Big boost to IT sector:

  • Information technology sectoris anticipated to be gained heavily from the India-Australia trade agreement.
  • The taxes would be gone with this historical agreement and the IT industry can witness a “quantum jump in their businesses with Australia.
  • On the Indian landscape, the FTA will boost the cheaper supply of raw materials in the country. Cheaper raw materials will help our industries, adding jobs, work opportunities, and start-ups.

Textile, commerce and consumer affairs:

  • India is also looking over portfolios such as textile, commerce, and consumer affairs over the agreement that might grow prospects of increased employment opportunities for Indians.

Visas for Indian Chefs and Yoga instructors:

  • In the trade agreement India is hoping for employment opportunities for Indians as the assurance will be given that every child who goes from India to Australia will be given an opportunity for employment there.
  • Even visas for Indian chefs & yoga instructors will be approved immediately along with Stem graduates, doctoral will get a 4-year work visa in Australia. The 3 years working visa to Postgraduate will given.

Medicine Sector:

  • Pharmaceutical industries would be benefited from the deal. Already the medicines have gone through a rigorous approval process from USA & UK and it will have a fast track mechanism to get approval in the Australian regulatory system.

Bilateral trade:

  • Initial size of bilateral trade between India-Australia Economic Cooperation Trade Agreement (IndAus ECTA) is might go up to around $50 billion in the next 5-6 years.
  • The significance in taking the country’s goods and services to the global markets is “a big recognition of India’s growing stature & capabilities.
  • Australian Prime Minister Anthony Albanese has officially informed that the Australian parliament has cleared the bills related to the India- Australia trade agreement.

Question & Answer:

Q1. With which country India has signed a free trade agreement recently?

Ans. Australia

Q2. Which sectors would get benefit from India-Australia trade agreement?

Ans. Textiles, Jwellery and Jems, Pharmaceuticals and especially to IT indsutry

Q3. How much billion dollar trade can go under the India-Australia Economic Cooperation Trade Agreement in next 5 years?

Ans. $50 billion

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