PIB Summary- 30th December, 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

India-Australia Economic Cooperation and Trade Agreement marks two years of success

Context

The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) marks two years of successful growth and strengthened bilateral trade relations.

India-Australia Economic Partnership Overview

• The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has been successful in boosting bilateral trade, growing from USD 12.2 billion in 2020-21 to USD 26 billion in 2022-23.
• The total trade for 2023-24 moderated to USD 24 billion, with India’s exports to Australia growing by 14%.

Trade Momentum:

• From April-November 2024, total merchandise bilateral trade reached USD 16.3 billion, continuing the positive trade momentum.
• The implementation of the agreement is evident, with export utilization at 79% and import utilization at 84%.

Sectoral Growth:

• Key sectors such as textiles, chemicals, and agriculture have witnessed substantial growth.
• The agreement has also facilitated the export of new products like gold studded with diamonds and turbojets, showcasing diversification.
• Imports of essential raw materials such as metalliferous ores, cotton, and wood have supported India’s industries.

Future Prospects:

• Both India and Australia are now working on the Comprehensive Economic Cooperation Agreement (CECA), which aims to build on the ECTA’s foundation.
• Ten formal rounds and inter-sessional discussions have already been held.

Target for 2030:

• Both countries aim to achieve a trade target of AUD 100 billion by 2030, strengthening the economic relationship and driving mutual prosperity.

Conclusion:
The successful completion of ECTA and the ongoing work on CECA will continue to deepen the economic ties between India and Australia, contributing to a more resilient global economy.