Big boost to IT sector as Australia clears India trade deal

New Delhi: Australia on Tuesday cleared the free trade agreement (FTA) with India, paving the way for strong bilateral trade between the two countries. The two nations signed an interim free trade deal—Economic Cooperation and Trade Agreement (ECTA) in April this year. On Tuesday, Australian PM Anthony Albanese tweeted that the free trade agreement with India has passed through parliament.

Union Commerce and Industry Minister Piyush Goyal called it a landmark moment for Australia and India and congratulated the Prime Ministers of both countries for achieving this significant milestone.

For the first time in Australia's history, he said, they are giving 100 per cent tariff lines with most lines on "entry into force" and 113 lines within a period of 5 years. These are 2 democracies with shared interests on the world stage, he added.

Earlier in the day, Goyal expressed his delight on the FTA and said: "Delighted that India-Australia Economic Cooperation & Trade Agreement has been passed by the Australian Parliament. A result of our deep friendship, it sets the stage for us to unleash the full potential of our trade ties & spur massive economic growth."

Meanwhile, Australian Trade Minister Don Farrell said the ECTA will enter into force 30 days (or another mutually agreed time) after the respective parties have confirmed in writing that they have completed their domestic requirements.

The agreement will support businesses to grow, to offer more employment opportunities, and will give Australian consumers more choice at the checkout, Farrell said. "Australia will work closely with the Indian government to implement the trade agreement "as soon as possible," he added.