Exports from India to Australia have grown by 14 per cent to USD 5.8 billion in April-November this fiscal year due to the strong growth of various sectors, such as engineering, pharmaceuticals and electronics, according to a senior official’s statement on 29 December.
The interim free trade agreement implemented on 29 December last year has helped businesses in India and Australia, and negotiations to widen the existing trade agreement into a comprehensive deal are progressing well, said Rajesh Agrawal, Additional Secretary in the Department of Commerce.
He added that foreign direct investment from Australia to India has also increased from an annual average of USD 30-40 million to USD 300 million this year. However, India’s imports from Australia have decreased by 19 per cent to USD 11.14 billion during April-November this fiscal year. Bilateral trade also fell by 10 per cent to USD 17 billion.
Engineering, pharmaceuticals, electronics, spices, coffee, textiles, marine products, cashews and plastic have all recorded healthy growth during the seven months of this fiscal year. However, exports of gems, jewellery and handicrafts have reported negative growth.
On the import side, inbound shipments of gold have increased to USD 1.56 billion during April-October 2023 from USD 436 million in the same period last year. Other import sectors recording healthy growth include pulses, metals, iron and steel, wood and wood products, machine tools and newsprint.
When asked which country is benefiting more from the agreement, Agrawal said that it is too early to say. Trade expert and Hi-Tech Gears Chairman Deep Kapuria commented that Australia is of immense importance to India given India’s ambition of energy transition, which is critical for achieving net zero by 2070. A deeper trade agreement with Australia would help India secure its critical minerals needs, Kapuria said.
