Australia to Eliminate All Tariffs on Indian Exports from January 2026 Under ECTA
Australia will remove tariffs on 100% of its tariff lines for Indian exports starting January 1, 2026, under the India-Australia Economic Cooperation and Trade Agreement (ECTA). This announcement came from Commerce and Industry Minister Piyush Goyal as the trade pact marked its third anniversary. The agreement has already benefited several Indian export sectors, including gems and jewellery, manufacturing, chemicals, textiles, plastics, pharmaceuticals, and petroleum products. India's exports to Australia grew by 8% in FY2024-25, improving the overall trade balance. The ECTA, implemented in December 2022, aims to strengthen bilateral economic ties through progressive tariff elimination and enhanced market access.
*this image is generated using AI for illustrative purposes only.
Australia will eliminate tariffs on 100% of its tariff lines for Indian exports starting January 1, 2026, under the India-Australia Economic Cooperation and Trade Agreement (ECTA). This significant development was announced by Commerce and Industry Minister Piyush Goyal as the bilateral trade pact marked its third anniversary.
Major Boost for Indian Exporters
The elimination of all Australian tariffs represents a substantial opportunity for India's export sector, particularly benefiting labour-intensive industries. Minister Goyal emphasized that this move will open fresh avenues for Indian exporters, MSMEs, farmers, and workers.
Goyal stated on social media platform X, "Over the past three years, the Agreement has delivered sustained export growth, deeper market access, and stronger supply-chain resilience, benefiting Indian exporters, MSMEs, farmers, and workers alike."
Sector-Wise Performance Under ECTA
The trade agreement has particularly benefited several key Indian export sectors:
| Sector | Performance Highlights |
|---|---|
| Gems and Jewellery | 16% export growth (April-November 2025) |
| Manufacturing | Sustained growth under ECTA |
| Chemicals | Enhanced market access |
| Textiles | Improved export opportunities |
| Plastics | Strengthened trade ties |
| Pharmaceuticals | Deeper market penetration |
| Petroleum Products | Expanded export potential |
Trade Growth and Balance Improvement
India's export performance to Australia has shown positive momentum under the ECTA framework:
| Trade Metric | Performance |
|---|---|
| Export Growth (FY2024-25) | 8% increase |
| Trade Balance | Improved overall position |
| Agreement Duration | 3 years since implementation |
| Implementation Date | December 2022 |
Strategic Trade Diversification
This development comes at a crucial time as India seeks to diversify its export destinations amid changing global trade dynamics. The country has been exploring alternative markets, particularly after facing trade challenges with the United States, India's largest trading partner. India has been subject to 50% tariffs on exports to the US since August 27, 2025, under the current US administration.
ECTA Framework and Objectives
The India-Australia Economic Cooperation and Trade Agreement, which became operational in December 2022, aims to strengthen bilateral economic ties through progressive tariff elimination, simplified market access, and enhanced supply chain integration. The complete removal of Australian tariffs by January 2026 represents a significant milestone in achieving these objectives and demonstrates the agreement's effectiveness in facilitating trade growth between the two nations.
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