December 29, 2025
New Delhi– Starting January 2026, Australia will eliminate tariffs on all exports from India, marking a significant milestone in the trade relationship between the two countries. This decision is part of the India-Australia Economic Cooperation and Trade Agreement (ECTA) and represents the final phase of Australia’s commitment to tariff liberalization with India.
Under the ECTA, Australia had already removed customs duties on more than 85 percent of Indian exports when the agreement took effect. The remaining products were placed under a phased tariff reduction schedule, set to conclude in January 2026. Once fully implemented, 100 percent of Indian goods will have duty-free access to the Australian market, providing Indian exporters with a significant competitive advantage.
The decision is anticipated to significantly benefit crucial Indian export sectors, such as textiles and apparel, engineering goods, auto components, pharmaceuticals, chemicals, gems and jewelry, leather products, as well as agricultural and processed food items. By removing tariffs, Indian products will be more price-competitive, enabling exporters to increase sales volumes and achieve greater market penetration in Australia.
From India’s viewpoint, this move aligns with its broader strategy to diversify export markets and enhance trade relations with developed countries. For Australia, the agreement guarantees reliable access to high-quality and cost-competitive Indian products, while also strengthening supply chain resilience in the face of global trade uncertainties.
The elimination of tariffs is expected to boost investment flows, enhance the involvement of Indian companies in Australian value chains, and provide better opportunities for small and medium enterprises (SMEs). Trade experts believe that this development will further accelerate the growth of bilateral trade, which has already been steadily increasing since the signing of the Economic Cooperation and Trade Agreement (ECTA).
With Australia set to complete its tariff removal commitments by January 2026, the India–Australia ECTA is poised to become one of India’s most comprehensive and exporter-friendly trade agreements, further strengthening the long-term strategic and economic partnership between the two nations.
The removal of all tariffs positions Australia as a key growth market for Indian exports and strengthens India’s footprint in global trade.
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