India-Australia Free Trade Deal: Landmark Moment For Two Countries, Says Piyush Goyal
Goyal said that the IT industry has shared that if the tax goes away, which has now been approved by the Australian parliament, they can see a quantum jump in their business with Australia
As the Australian Parliament passed a bilateral free trade agreement (FTA) with India on Tuesday, Union commerce and industry minister Piyush Goyal in a congratulatory note said that this is a landmark moment for Australia and India. “It is a landmark moment for Australia and India. I would like to congratulate the PMs of India and Australia for achieving this significant milestone today. These are two democracies with shared interests on the world stage,” Goyal said.
“This is the first time in Australian history that they're giving duty-free import on 100 per cent of items. This is also the first trade agreement with a developed country after a decade,” he said.
The agreement is critical for Australia to diversify its exports away from the troubled Chinese market and toward India.
The bills easily passed the House of Representatives on Monday and the Senate made them law on Tuesday.
Australian PM Anthony Albanese in a tweet said, "Our Free Trade Agreement with India has passed through parliament.”
BREAKING: Our Free Trade Agreement with India has passed through parliament. (📷 with @narendramodi at the G20) pic.twitter.com/e8iG3gpTgr
— Anthony Albanese (@AlboMP) November 22, 2022
Prime Minister Narendra Modi has also conveyed his gratitude to the Australian PM Anthony Albanese. In a tweet Modi thanked Albanese saying that the entry into IndAus ECTA will be welcomed by the business communities of two countries, and will strengthen the India-Australia Comprehensive Strategic Partnership.
Thank you PM @AlboMP! The entry into force of IndAus ECTA will be greatly welcomed by our business communities, and will further strengthen the India-Australia Comprehensive Strategic Partnership. https://t.co/7gdaFNKTOw
— Narendra Modi (@narendramodi) November 22, 2022
“The IT sector is the biggest gainer. IT industry has shared that if the tax goes away, which has now been approved by the Australian parliament, they can see a quantum jump in their business with Australia," Goyal said on FTA.
“We're looking for opportunities to see how Indian businesses can get a bigger market share in Australia. Raw materials coming cheaper to India will help our industry. This will help us add jobs, work opportunities and start-ups. Our pharma industry will also get a big boost as medicines which have already gone through a rigorous approval process from the US and UK will have a fast-track mechanism to get approval in the Australian regulatory system,” the minister said.
On textile sector, he said, “The textile sector will benefit. Gem and jewellery sector are also excited as they will be able to sell their high-value jewellery in Australia, whereas, the wine industry has welcomed this trade. The Indian wine industry will grow. The Indian wine industry would be able to export Indian wine to Australia,” the minister stated.
According to him, FTA reflects the strong bond Prime Minister Narendra Modi has built with the Government in Australia. “It is a big recognition of India’s growing stature and capabilities that India’s businesses provide to the world both in goods and services,” Goyal said, while adding, "Visas for Indian chefs and yoga instructors along with assurance that every child who goes from India to Australia will be given an opportunity for employment there. Stem graduate, doctoral will get 4 year of work visa in Australia. Postgraduate will get 3 years of work visa.”
Both major agreements by PM Modi whether a comprehensive economic partnership with UAE or the INDAUS ECTA both were done with unanimous support of all stakeholders in all three countries, the UAE, Australia, and India, Goyal pointed out.
Australian prime minister said that the new trade agreements with India will strengthen our existing trade and economic relationships. “These new agreements will create new opportunities for trade diversification and great outcomes for Australian business and Australian families,” said Anthony Albanese.
Australian High Commissioner to India Barry O’Farrell, said, “I am thrilled to see implementing legislation for the Australia-India Economic Cooperation and Trade Agreement pass through both houses of Australia’s Parliament without dissent.
Australia’s Minister for Trade and Tourism, Don Farrell, has said that closer economic ties with India are a critical component of the Australian government's trade diversification strategy.
The quality of ECTA, in terms of market access and opportunity for Australian businesses, demonstrates India's commitment to our bilateral economic partnership: Australian High Commissioner to India Barry O’Farrell.
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