Australia will remove tariffs on all its tariff lines for Indian exports starting January 1, 2026. This change is an important step under the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA). The announcement coincides with the trade pact completing three years, highlighting the growing economic partnership between the two countries.

This move is likely to significantly boost trade between Australia and India. It will particularly benefit Indian exporters in labor-intensive sectors like textiles, apparel, leather, gems and jewelry, agriculture, engineering goods, and processed food. By allowing duty-free access on all tariff lines, Australia will become one of the most open markets for Indian goods among developed countries.

Union Commerce and Industry Minister Piyush Goyal pointed out the positive effects of the agreement. He mentioned that India’s exports to Australia grew by about 8% in FY25, fueled by strong performance in manufacturing and agricultural products. He noted that eliminating tariffs shows growing trust in India’s production capabilities and global competitiveness.

The Ind-Aus ECTA has not only promoted trade growth but also helped strengthen supply chains, encouraged investment, and improved market access for businesses on both sides. For Indian exporters, especially small and medium-sized enterprises (MSMEs), the complete removal of tariffs is expected to improve their price competitiveness and create new opportunities in the Australian market.

This development supports India’s long-term economic goal of expanding exports, integrating into global value chains, and building stronger partnerships with key Indo-Pacific economies. As the agreement moves into its next phase, both nations are expected to focus on further cooperation in services, digital trade, clean energy, and critical minerals, strengthening the strategic and economic ties between India and Australia.