News

Published: November 23, 2023
Updated: November 23, 2023

Revolutionizing Trade: India-Australia Partnership Surges to $27.8 Billion in a Decade

In a remarkable transformation, the trade dynamics between India and Australia have witnessed an extraordinary surge, reaching an impressive $27.8 billion from a modest $15.6 million a decade ago. This revelation comes from a comprehensive study conducted by India Exim Bank, unveiled on Tuesday.

Transformative Trade Relations

Over the past ten years, the bilateral trade relations between India and Australia have undergone a significant metamorphosis, contributing to this substantial growth. In 2012, the trade volume stood at a mere $15.6 million, marking an astonishing leap.

Driving Forces Behind the Surge

A considerable portion, approximately 96%, of India's imports from Australia constitutes raw materials and intermediate goods, notably coal. Notably, India relies on Australia for about 74% of its coking coal imports. On the flip side, India's exports to Australia primarily consist of finished products, with a particular emphasis on consumer goods.

Economic Cooperation and Trade Agreement (ECTA)

The collaboration between India and Australia took a formal turn last year in April with the initiation of the Economic Cooperation and Trade Agreement (ECTA). Following the ratification and exchange of written instruments, this agreement officially came into force on December 29, 2022.

Potential for Further Growth

The India Exim Bank's study proposes elevating the ECTA to a Comprehensive Economic Cooperation Agreement (CECA) to unlock the untapped potential for even closer economic ties between the two nations. This envisioned cooperation could span various areas, including support for small and medium enterprises, promotion of digital trade, geographical indication certified goods, local currency trade payments, strategic alliances for critical mineral sourcing, government procurement, agri-technology partnerships, and renewable energy collaborations.

The Future Landscape

Released during the Asian Exim Bank Forum (AEBF) annual meeting in Sydney, the study envisions a future where India and Australia solidify their economic collaboration. The AEBF, established by the Export-Import Bank of India for Asian Export Credit Agencies (ECAs), serves as a platform for exchanging information to foster trade ties.

Charting a Course for Economic Prosperity

As we witness this monumental growth in India-Australia trade, the prospect of transforming the ECTA into a CECA holds the key to unlocking even greater economic synergies. The partnership's potential areas of collaboration are diverse, spanning from supporting enterprises to advancing technology and sustainable energy initiatives. The future looks promising for the ongoing success of this burgeoning economic alliance.

Embark on the Future Together

The surge in trade between India and Australia not only reflects economic prowess but also signifies a flourishing partnership. As both nations explore avenues for deeper collaboration, the global trade landscape is bound to witness new dimensions of growth and cooperation.