Commerce and Industry Minister Piyush Goyal on Tuesday said that under the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), duties on 100 per cent tariff lines would be eliminated by Australia.
The Ind-Aus ECTA was earlier ratified by the Australian parliament for its implementation.
Addressing a press conference, Goyal said that the agreement will come into force soon on a mutually convenient date once both the sides have completed their domestic processes.
He said that the ECTA would give a big boost to several sectors of the economy, especially textiles, gems and jewellery and pharmaceuticals.
As many as 10 lakh jobs are estimated to be created as the result of the ECTA.
Goyal noted that the agreement would also open new opportunities for the service sector in India and would immensely benefit students by offering them an opportunity to work in Australia.
In fact, he informed that an annual visa quota of 1,800 is to be instituted for Indian yoga teachers and chefs.
The ECTA provides for an institutional mechanism to encourage and improve trade between the two countries.
It is expected that with this agreement, the total bilateral trade will cross $45-50 billion in five years from the existing $31 billion.
India’s merchandise exports is likely to increase by $10 billion by 2026-27.
Moreover, since the labour-intensive sectors will be benefitted, it is expected to create an additional 10 lakhs jobs in India, while setting up ample opportunities for investment and promotion of start-ups, the minister said.
Similarly, it would provide enhanced job opportunities for Indians in Australia and increased remittance flows to India, he added.