Australia has scrapped tariffs on 100 per cent of its tariff lines for Indian exports, with the move taking effect on January 1, granting Indian goods full duty-free access to the Australian market under the India–Australia Economic Cooperation and Trade Agreement (ECTA).
The development was confirmed by India’s Commerce and Industry Minister Piyush Goyal in an official statement, saying that 100 per cent of Australian tariff lines would be zero-duty for Indian exports from January 1, 2026.
It is seen as a move that would significantly enhance export opportunities for Indian businesses, particularly small and medium enterprises. Australia had already provided zero-duty access on about 98 per cent of tariff lines when ECTA entered into force in December 2022, with the remaining lines scheduled for phased reduction.
The India–Australia ECTA, signed in April 2022, was conceived as an interim trade agreement aimed at rapidly expanding bilateral trade while negotiations for a broader Comprehensive Economic Cooperation Agreement continue. Under the pact, Australia agreed to progressively eliminate tariffs on Indian exports, while India committed to reducing or eliminating duties on a range of Australian products, including minerals, wine and agricultural goods, subject to exclusions for sensitive sectors.
Since the agreement came into effect, trade between the two countries has shown steady growth. Indian merchandise exports to Australia rose by around eight per cent in the 2024–25 financial year, with gains reported in sectors such as textiles, engineering goods, pharmaceuticals, gems and jewellery, chemicals and agricultural products. Industry bodies say the full removal of tariffs is expected to further improve price competitiveness for Indian exporters in the Australian market.
Exporters have welcomed the move, noting that duty-free access across all tariff lines removes a key structural barrier to trade. However, some industry representatives caution that Indian firms will still face stiff competition from other low-cost exporters in Australia, particularly from China, and will need to focus on quality, branding and supply reliability to fully capitalise on the opportunity.
Australian government trade documents describe ECTA as part of a broader strategy to deepen economic engagement with India and diversify supply chains in the Indo-Pacific. With tariffs on Indian goods now set to fall to zero across the board, both governments expect increased trade flows, stronger business-to-business ties and greater investment momentum in the years ahead.
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