New Delhi: India and Australia on Saturday inked an interim trade pact to boost economic ties between the two countries.
The India-Australia Economic Cooperation and Trade Agreement was signed in the presence of Commerce and Industry Minister Piyush Goyal and his Australian counterpart Dan Tehan in a virtual ceremony.
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Speaking on the occasion, Prime Minister Narendra Modi said that the India-Australia trade pact is a watershed moment for bilateral relations.
"Consensus on such an important Agreement in such a short period of time shows the mutual trust between the two countries. This is truly a watershed moment for our bilateral relations," PM Modi said at India-Australia Economic Cooperation and Trade Agreement virtual signing ceremony.
He emphasised that there is "great potential between our two economies to fulfill each other's needs."
"With this Agreement, we will be able to benefit from opportunities. On the basis of this Agreement, together we will be able to contribute to increasing supply chains resilience and stability of Indo-Pacific region," he added, as quoted by news agency ANI.
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Meanwhile, Australian PM Scott Morrison highlighted that the pace and scale of our cooperation since the two countries announced a comprehensive, strategic partnership has been remarkable.
"Some USD 282 Million in new initiatives that my government has announced including at the Summit which will drive our expanding cooperation," he said.
"This is the single largest Australian government investment in our relationship with India but it won't be the last and now mark another milestone in that relationship. The signing of the India-Aus Agreement further develops on the promise of our economic relationship," PM Morrison added.
Speaking at the ceremony earlier, Union Minister Piyush Goyal said that India and Australia are natural partners, connected by shared values of democracy, rule of law, and transparency.
"Like 2 brothers, the 2 nations supported each other during the pandemic," he said.
India-Australia Interim Trade Deal, Indian Exports To Get Duty-Free Access
The interim trade deal encompasses goods and services that will enable Indian exporters from over 6,000 broad sectors, including textiles, leather, furniture, jewellery, and machinery to get duty-free access to the Australian market, government sources told news agency PTI.
According to a statement by Commerce Ministry, the agreement is a "balanced and equitable" pact and it will further cement the already close and strategic relations between India and Australia.
It will significantly enhance the bilateral trade in goods and services, create new employment opportunities, raise living standards and improve the general welfare of the peoples of the two countries, the Ministry stated.
Sources also told PTI that over 6,000 tariff lines would be available for Indian exporters at zero duty immediately after the implementation of the interim pact. Australia trades in about 6,500 tariff lines, while India has over 11,500 tariff lines.
The agreement will also boost intensive sectors such as textiles and apparel, few agricultural and fish products, leather, footwear, furniture, sport goods, jewellery, machinery, electrical goods, railway wagons, selected pharmaceutical products, and medical devices.
Under the pact, Australia will offer zero duty access to India on about 96.4 per cent value of exports from day one and this covers many products, which currently attract 4-5 per cent customs duty.
At the same time, India will also provide duty concessions to Australian wines in a phased manner over a period of ten years.
Petroleum products, textiles, and apparels, engineering goods, leather, chemicals and gems, and jewellery are some major exports by India to Australia. Imports mainly include raw materials, minerals, and intermediate goods.
(With Inputs By Agencies)