{"id":34510,"date":"2024-12-30T21:29:23","date_gmt":"2024-12-30T15:59:23","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=34510"},"modified":"2024-12-30T21:29:24","modified_gmt":"2024-12-30T15:59:24","slug":"two-years-of-india-australia-economic-cooperation-and-trade-agreement","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/30-12-2024\/two-years-of-india-australia-economic-cooperation-and-trade-agreement","title":{"rendered":"Two Years of\u00a0 India-Australia Economic Cooperation and Trade Agreement"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ International Relations<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/22-03-2022\/2nd-india-australia-virtual-summit\">India-Australia<\/a> Economic Cooperation and Trade Agreement <strong>(Ind-Aus ECTA) <\/strong>completed two years creating new opportunities for MSMEs, businesses and employment in both nations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India-Australia Economic Co-operation and Trade\u00a0 Agreement (Ind-Aus ECTA)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/22-03-2022\/2nd-india-australia-virtual-summit\">Ind-Aus<\/a> ECTA provides an institutional mechanism to encourage and improve trade between the two countries.\n<ul class=\"wp-block-list\">\n<li>It entered into force on <strong>29 December 2022.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Core Features: Australia provides<\/strong> preferential market access on <strong>100% tariff lines, <\/strong>benefiting India&#8217;s labor-intensive export sectors such as textiles, leather, and jewelry.\n<ul class=\"wp-block-list\">\n<li><strong>India offers preferential access<\/strong> on over <strong>70% tariff lines<\/strong>, mainly on raw materials and intermediaries of Australian export interest, including coal, mineral ores, and wine.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Progress under Ind-Aus ECTA<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The bilateral merchandise trade<\/strong> has surged from USD 12.2 billion in 2020-21 to USD 24 billion in 2023-24, with India\u2019s exports to Australia growing by 14%.<\/li>\n\n\n\n<li><strong>The export utilisation<\/strong> under the Ind-Aus ECTA has reached <strong>79 per cent<\/strong> after two years of implementation, while import utilisation stood at <strong>84 per cent.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Trade Utilisation<\/strong> rates measure how effectively businesses leverage trade benefits, offering insights into procedural efficiencies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Key sectors showing growth<\/strong>: Textiles, chemicals, agriculture, and new exports like gold-studded diamonds and turbojets have seen notable growth. Imports of raw materials such as metalliferous ores, cotton, and wood have supported Indian industries.\n<ul class=\"wp-block-list\">\n<li>Sectors like electronics and engineering still hold potential for further expansion.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India-Australia Economic Cooperation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Australia is an important trade and strategic partner of India.\u00a0<\/li>\n\n\n\n<li>Both the countries are part of the 1<strong>4 country Indo Pacific Economic Forum for Prosperity (IPEF) <\/strong>and Trilateral Supply Chain Resilience Initiative (SCRI) which is expected to strengthen the supply chain resilience in the region.<\/li>\n\n\n\n<li>FDI from Australia during January-September 2023 was <strong>$307.2 million,<\/strong> seven times the $42.43 million received in the whole of 2022.\n<ul class=\"wp-block-list\">\n<li>FDI in consultancy services was<strong> $248 million<\/strong> from <strong>$0.15 million<\/strong> in 2022.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In FY23, India was Australia&#8217;s 9th largest trading partner, and Australia was India&#8217;s 13th largest trading partner.<\/li>\n\n\n\n<li>Trade between India and Australia is expected to cross<strong> $45-50 billion by 2035.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Future Plans\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strengthening the Indo-Pacific Vision:<\/strong> India and Australia share a commitment to a resilient, inclusive, and open Indo-Pacific region.\n<ul class=\"wp-block-list\">\n<li>Both nations are active members of the <strong>QUAD<\/strong>, <strong>Indo-Pacific Economic Framework for Prosperity (IPEF),<\/strong> and the <strong>Supply Chain Resilience Initiative (SCRI)<\/strong> with Japan.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Comprehensive Economic Cooperation Agreement (CECA):<\/strong> Negotiations are underway for a CECA to build upon ECTA outcomes, targeting greater economic integration and collaboration in strategic sectors.<\/li>\n\n\n\n<li>Both countries are aiming for bilateral trade to reach AUD 100 billion by 2030.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concluding remakes<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/22-03-2022\/2nd-india-australia-virtual-summit\">India and Australia<\/a> are steadily advancing their economic partnership, leveraging the Ind-Aus ECTA to unlock new opportunities.\u00a0<\/li>\n\n\n\n<li>In recent times, <strong>investor-friendly policies<\/strong> and game-changing reforms has made India an even more attractive destination for Australian businesses.<\/li>\n\n\n\n<li>Together, India and Australia are poised to take their economic partnership to new heights, fostering mutual prosperity and contributing to a more resilient and dynamic global economy.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2088669\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) completed two years creating new opportunities for MSMEs, businesses and employment in both nations.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-34510","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=34510"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34510\/revisions"}],"predecessor-version":[{"id":34511,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34510\/revisions\/34511"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=34510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=34510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=34510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}