Modi hails trade pact as “watershed moment’ in India-Australia ties

As India Australia Economic Cooperation and Trade Agreement (IndAus ECTA) came into force from today, Prime Minister Narendra Modi expressed his happiness and said that it is a “watershed” moment for the comprehensive strategic partnership.

“Glad that IndAus ECTA is entering into force today. It is a watershed moment for our Comprehensive Strategic Partnership. It will unlock the enormous potential of our trade and economic ties and boost businesses on both sides. Look forward to welcoming you in India soon,” Modi said in a tweet.

The trade pact will provide access to Indian goods on all tariff lines to Australian market with zero customs duty.

The Australian government’s Department of Foreign Affairs and Trade said that the agreement helps secure Australia’s foothold in the world’s fastest growing large economy and enables Australian businesses to unlock or expand their operations in a market of nearly one and a half billion people.

Earlier, addressing a press gathering, Commerce and Industry Minister Piyush Goyal said that the trade pact will generate an additional 10 lakh jobs in India.

The pact which was signed on April 2 was ratified on November 21.

“There is a lot of potential for exporting finished goods to Australia, since they hardly manufacture anything, they are largely a raw material and intermediate producing country, we will get cheaper raw materials which will not only make us more competitive globally but also enable us to serve Indian consumers better; enabling us to provide more quality goods at more affordable prices,” Goyal told reporters.

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