India, Australia To Sign Interim Trade Deal On Saturday. Indian Exports To Get Duty-Free Access

The India-Australia Economic Cooperation and Trade Agreement will be signed on Saturday in the presence of Commerce and Industry Minister Piyush Goyal and his Australian counterpart Dan Tehan.

(File Photo/ Getty)

New Delhi: India and Australia will sign an interim trade deal encompassing 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.

The India-Australia Economic Cooperation and Trade Agreement will be signed on Saturday in the presence of Commerce and Industry Minister Piyush Goyal and his Australian counterpart Dan Tehan in a virtual ceremony.

Prime Ministers of both countries - Narendra Modi and Scott Morrison will also be present at the virtual ceremony.

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 attracts 4-5 per cent customs duty.

Meanwhile, 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 from PTI.)