A Well-Paved Business Corridor

The India-Australia relationship doesn’t really resonate well with Indians these days, especially with the cricket fans. In a span of a few months, the Australian Cricket Team handed two agonizing defeats to the men in blue in a single year in the World Test Championship Final in June and in the Men’s Cricket World Cup final in November 2023. However, the banter on the cricket pitch resembles nothing that’s happening between the two countries business-wise.

Last year, Indian exporters had a field day with the utilization of the India-Australia Economic Cooperation

and Trade Agreement(ECTA), which reached 77 percent during the first nine months since the implementation of the interim trade deal, according to the official data. This indicates that from January to September, 77% of Indian goods' total trade value, which qualifies for reduced tariffs under the trade agreement, was exported via the preferential or ECTA pathway. The Indian exporters who have benefited from the trade deal include sectors such as iron and steel products, linens, agricultural products, and electrical conductors.

The leaders in both countries are highly optimistic about harnessing the potential of the business corridor between the countries. Recently, while talking at an event in Mumbai, Majell Hind, Consul General of Australia in Mumbai, said, “India Australia bilateral trade (in goods and services) has crossed $48 billion and I expect it to double to nearly $100 billion in the next five years. The recently signed trade agreement is beneficial for India as its trade deficit with Australia has fallen by 15% since the implementation of this pact.” The timing couldn’t be any better to publish our yearly special issue based on the relationship between the two countries. Do let us know your thoughts.