India’s electronics, pharma sectors emerge as key beneficiaries of Australia trade pact

India-Australia FTA: The India, Australia Economic Co-operation and Trade Agreement (ECTA), which came into force on December 29, 2022, has completed a year. The two nations are currently looking to expand the existing pact to an ambitious Comprehensive Economic Co-operation Agreement (CECA).

Engineering goods, electronic products, and pharmaceuticals are some of the biggest beneficiaries of India’s trade deal with Australia as exports of these items from New Delhi witnessed a significant jump. 

India’s exports to Australia along preferential lines jumped 17.8 percent on-year to $1.58 billion in April-October 2023, according to a presentation shared by India’s commerce ministry on December 29. Preferential lines refers to preferential access, primarily through duty cuts, given by nations to each other’s markets as part of trade pacts signed between them.

Of the sector-wise Indian exports to Australia on preferential lines, the highest on-year percentage jump was seen in drugs and pharmaceutical products to 52 percent in the first seven months of the current fiscal, followed by cereals preparation that saw a rise of 37 percent during the same period.

Imports from Australia on preferential lines jumped most for pulses, and fruits and vegetables during April-October 2023.

India’s overall merchandise exports to Australia grew 14 percent on-year in April-November 2023, while imports from Australia fell 19 percent during the same period, the presentation showed.

By: ADRIJA CHATTERJEE

From: https://www.moneycontrol.com/news/business/indias-pharma-electronics-sectors-emerge-key-beneficiaries-of-australia-trade-pact