India-Australia Economic Cooperation and Trade Agreement

Syllabus :GS 2/IR

In News

  • India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) marked  its third anniversary.

Ind-Aus ECTA

  • The agreement  signed in April , 2022, has strengthened economic ties between India and Australia, fostering new trade pathways and business opportunities
  • Total bilateral trade reached USD 24 billion in 2023-24, with a 14% increase in India’s exports to Australia compared to 2022-23.
    • India’s exports to Australia grew by 4.4% from April 2024 to February 2025 compared to the same period in the previous fiscal year.
  • Sectors benefiting from ECTA include textiles, pharmaceuticals, chemicals, agriculture, electronics, and engineering.
    • New export lines, such as Calcined Petroleum Coke, High-Capacity Diesel Generating Sets, and Air Liquefaction Machinery, show expanding trade opportunities.
  • Imports from Australia include key raw materials like metalliferous ores, cotton, and wood products, supporting the growth of Indian industries.

Diplomatic Relations

  • Diplomatic relations between Australia and India date back to 1941, with the Consulate-General of India opening in Sydney.
    • Both countries hold annual leader-level summits and frequent multilateral forum interactions (e.g., Quad, G20, East Asia Summit).
    • The 2+2 format (Foreign & Defence Ministers) meetings occur every two years to discuss strategic issues.
    • Foreign Ministers’ Framework Dialogue meets annually.

People-to-People Links

  • Nearly 1 million Australians have Indian heritage, forming the second-largest overseas-born group.
  • India is Australia’s largest source of skilled migrants and second-largest source of international students.
  • Cultural and Community Initiatives like the Australia India Leadership Dialogue and Youth Dialogue strengthen bilateral ties.

Renewable Energy & Resources

  • Renewable Energy Partnership was launched November 2024 and  focuses on solar, green hydrogen, and energy storage.
  • Both countries are developing new supply chains for green steel and minerals to support India’s clean energy goals.

Defence Engagement

  • It was enhanced post-2020 with Mutual Logistics Support Agreement and joint military exercises.
    • Australia hosted Exercise Malabar, Indian Navy visited Australia’s Cocos Islands in 2023.

Future Outlook 

  • Australia and India  are committed to deepening cooperation for mutual prosperity and a stable Indo-Pacific region.
  • The partnership is expected to continue growing, driving mutual prosperity and contributing to a stronger global economy.

Source ;PIB