Indian exports to Australia to become fully duty-free from January 2026

All Indian exports will enjoy zero-duty access to the Australian market from January 1, 2026, under the India–Australia Economic Cooperation and Trade Agreement (ECTA), Union Commerce and Industry Minister Piyush Goyal announced.

The Minister said that once the final phase of tariff liberalisation takes effect, 100 per cent of Australian tariff lines will be eliminated for Indian goods, opening up new opportunities, particularly for labour-intensive industries. He noted that the trade pact has already begun delivering measurable gains for India’s export sector.

Since the agreement came into force, India’s exports to Australia have shown steady momentum, rising by about 8 per cent during the 2024–25 financial year. According to Goyal, the deal has strengthened market access, improved supply-chain resilience and generated benefits across exporters, MSMEs, farmers and workers.

ECTA was signed in April 2022, and its impact is also visible in the narrowing of India’s trade deficit with Australia. The deficit has declined by over 42 per cent, falling to $6.9 billion in 2024–25 from $12.06 billion in 2022–23, the year the agreement was concluded.

Manufactured goods have been the primary drivers of export growth, with strong performance from chemicals, textiles, pharmaceuticals, plastics and petroleum products. Gems and jewellery exports have also gained traction, recording a 16 per cent increase during April–November 2025. Agricultural shipments have expanded sharply, led by fruits and vegetables, marine products, spices and a notable surge in coffee exports.

The Minister also highlighted the signing of a Mutual Recognition Arrangement on organic products as a significant milestone under the pact. The arrangement is expected to simplify procedures, reduce compliance costs and facilitate smoother trade for Indian exporters in the Australian market.