Australia To Fully Scrap Tariffs On All Indian Exports

From January 2026, duty-free access for every Indian export beckons in Australia, promising wider market reach, export gains and a stronger India–Australia trade partnership ahead.

Australia will offer duty-free access to the entire range of Indian exports from 1 January 2026 under the Economic Cooperation and Trade Agreement (ECTA), Union Commerce and Industry Minister Piyush Goyal said.

Announced on December 29, 2025, the move marks a milestone in bilateral trade ties, giving Indian goods full tariff elimination across all Australian tariff lines. The announcement coincided with the third anniversary of the agreement, which was implemented on 29 December 2022.

Mr Goyal said the agreement has already supported stronger trade performance over the past three years. He noted that the pact has enhanced market access, improved supply chain resilience, and created wider export opportunities for Indian businesses, including micro, small and medium enterprises. The Minister highlighted that exporters across sectors have benefited from reduced barriers and clearer trade rules.

Since the deal took effect, India’s exports to Australia have grown steadily. Shipments in 2024–25 rose by around 8 per cent, helping improve India’s trade balance with Australia. Gains have been visible in industrial and value-added segments, including manufacturing goods.

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The ECTA is regarded as an ‘early harvest’ agreement, focusing on select areas of trade cooperation to deliver quicker benefits while a broader pact is under discussion. India and Australia remain in negotiations for a Comprehensive Economic Cooperation Agreement (CECA), which is expected to broaden trade engagement and include deeper economic integration measures upon conclusion.

Officials view the complete removal of tariffs as a significant step in building a long-term commercial partnership between the two countries.

It is expected to further enhance competitiveness for Indian products in the Australian market, support exporters across diverse sectors, and strengthen economic ties ahead of the proposed comprehensive agreement.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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