Part of: Prelims and GS II – International Relations
Context: India and Australia signed an Economic Co-operation and Trade Agreement (ECTA) recently.
Both countries have aimed to double bilateral trade to $50 billion in five years and ease movement of people, goods and services across borders.
This is also the first such pact signed by India with a developed country in a decade.
Key takeaways
The deal will facilitate work visas for two to four years for Indian students in Australia on a ‘reciprocal basis’.
It will allow Indian chefs and yoga professionals to work there as well.
The agreement will facilitate zero duty access on over 96% of Indian exports, including several labour-intensive industries.
India will, in turn, offer preferential access to Australia on over 70% of its tariff lines on goods imports, including ‘lines of export interest to Australia which are primarily raw materials and intermediaries such as coal, mineral ores and wines, etc.
The agreement with Australia is expected to create 10 lakh additional jobs in the country over the next five years.
It will also increase the resilience of supply chains, and also contribute to the stability of the Indo-Pacific region.
