top of page

Australia-India ECTA Is Coming into Force

Parliament has approved legislation to implement the Australia-India Economic Cooperation & Trade Agreement (AI-ECTA), which will come into force on 29 December 2022.

The AI-ECTA contains commitments that will benefit services suppliers and professionals considering entering the Indian market and already doing business in India.

As reported by the Department of Foreign Affairs and Trade, a new framework to support the recognition of professional qualifications, licensing and registration procedures between professional services bodies will be established to improve professional mobility. Australian services suppliers in 31 sectors and subsectors are guaranteed to receive the best treatment accorded by India to any future free trade agreement partner, including in:

• higher education and adult education

• business services (tax, medical and dental, architectural and urban planning

• research and development

• communication, construction and engineering

• insurance and banking

• hospital, audiovisual and tourism and travel.

The commitments will provide non-discriminatory treatment for Australian service suppliers across various sectors. There will also be improved transparency and predictability around the domestic regulations in India. India will provide market access for single-brand retailing and franchising and commitments regarding wholesale distribution services. Australian internet services businesses in India will also have more opportunities to expand their portfolio with foreign equity limit of 74 per cent for commercial presence. AI-ECTA contains separate Annexes on Financial Services, Professional Services and Telecommunications Services, consistent with these sectors' growth opportunities.

The AI-ETCA will also benefit Australian goods exporters.

AI-ECTA will eliminate tariffs on 85% of Australian goods exported to India. Initial estimates are that AI-ECTA will save Australian exporters around $2 billion per year in tariffs. Agrifood, health, mining and education sectors are among those that will benefit.

Some preferential tariffs for Australian goods exports to India include:

· Sheep Meat - eliminating tariffs on entry into force (EIF).

· Beef Wool - eliminating tariffs on EIF.

· Seafood - eliminating tariffs on entry into force for fresh rock lobster and eliminating taxes over seven years for other new, frozen and processed seafood products.

· Infant formula – elimination of tariffs over seven years.

· Barley, oats and lentils – locked-in duty-free entry for barley and oats and immediate 50% reduction for in-quota exports of lentils.

· Nuts – eliminating tariffs over seven years on cashews, macadamias, shelled pistachios and hazelnuts for almonds, immediate 50% tariff reduction on in-quota exports.

· Fruit and vegetables - eliminating tariffs over seven years for avocados, onions, cherries and berries. Reduction of taxes over seven years for apricots and strawberries. For oranges, mandarins and pears, immediate 50% tariff reduction for in-quota exports.

· Wine – tariff reductions over ten years for bottles over import prices of US$5 and US$15 and guaranteed best market access by India in any future FTA.

· Resources – eliminating tariffs on entry into force for coal, alumina, metallic ores such as copper, manganese and zirconium, titanium dioxide and certain non-ferrous metals. Tariffs on LNG will also be bound at 0 per cent on EIF.

For more information or assistance in trading with India, please book a free consultation session with China and Beyond's market specialists by emailing



bottom of page