Australia to Eliminate Tariffs on All Indian Exports by 2026

Australia will remove tariffs on all Indian exports starting January 1, 2026, as part of the Economic Cooperation and Trade Agreement (ECTA) between the two nations. This announcement was made by India's Commerce and Industry Minister Piyush Goyal on December 29, 2025, coinciding with the third anniversary of the ECTA, which came into effect on December 29, 2022. Goyal emphasized that this move will provide duty-free access across 100% of Australian tariff lines, significantly benefiting Indian exporters, particularly in labor-intensive sectors.

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Since the ECTA's implementation, India's exports to Australia have seen a steady increase, with an 8% growth recorded in the 2024-25 financial year. The bilateral goods trade reached $24.1 billion, with notable gains in various sectors including manufacturing, chemicals, textiles, plastics, pharmaceuticals, and gems and jewellery. For instance, gems and jewellery exports rose by 16% between April and November 2025. Agricultural exports also flourished, particularly in fruits, vegetables, marine products, spices, and coffee.

Australia to scrap tariffs on all Indian exports from January 1, 2026: Piyush GoyalIndia's export to Australia grows 8% over 3 years of Ind-Aus ECTA: Piyush GoyalCNBC TV18The Hindu100% Australian Tariff Lines To Be Zero-duty For Indian Exports From Jan 1, Says Piyush GoyalAustralia To Fully Scrap Tariffs On All Indian Exports

Minister Goyal highlighted that the ECTA has not only improved trade balance but also strengthened supply-chain resilience and market access for Indian businesses, including micro, small, and medium enterprises (MSMEs). He noted that the agreement aligns with India's broader economic strategies, such as the "Make in India" initiative and the vision for a developed India by 2047. As negotiations for a Comprehensive Economic Cooperation Agreement (CECA) continue, the ECTA serves as a foundational step in enhancing India's economic engagement in the Indo-Pacific region.

Australia To Fully Scrap Tariffs On All Indian Exports

Piyush Goyal stated, “Over the past three years, the Agreement has delivered sustained export growth, deeper market access, and stronger supply-chain resilience, benefiting Indian exporters, MSMEs, farmers, and workers alike.” He also mentioned that the Mutual Recognition Arrangement (MRA) on organic products, signed between the two countries, marks a significant milestone in facilitating trade and reducing compliance costs for exporters.

Australia to scrap tariffs on all Indian exports from January 1, 2026: Piyush Goyal

While the ECTA has been praised for its potential benefits, some critics argue that the long-term impacts on local industries in both countries need to be carefully assessed. Concerns have been raised regarding how the elimination of tariffs might affect domestic producers in Australia and whether the agreement adequately protects their interests.

Australia To Fully Scrap Tariffs On All Indian Exports

Looking ahead, the complete removal of tariffs is expected to enhance the competitiveness of Indian products in the Australian market and support exporters across diverse sectors. The ongoing negotiations for the CECA are anticipated to further deepen economic ties and expand the scope of trade cooperation between India and Australia.

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