India Australia Economic Cooperation & Trade Agreement (ECTA)

On April 2, 2022, India & Australia both witnessed what was a “watershed moment” in terms of bilateral relations and history was created as both countries signed the interim agreement. This comes after the decade long negotiations between both countries, ushering in an era that is going to be a potential game-changer for India to the foreign policy and geopolitical strategy.?

The Indo Aus Economic Cooperation and Trade Agreement (ECTA) is an interim arrangement, and the parties will now begin negotiations on a full-fledged free trade agreement over the next 75 days. Both the Ministers stressed the “ECTA” (pronounced EKTA) aspect which stands for Unity and goes on to reflect the bond that has been unified and has grown from strength to strength over the years.?

ECTA is expected to increase the bilateral trade from AU$ 36.7 billion to AU$ 60 billion and provides for competitive tariff elimination on a wide range of goods and open new services markets for suppliers across both ends. It promises to create new opportunities for jobs and businesses in both countries with a focus on “ease of doing business” and “building resilient supply chains”.?

India sees Australia as a key partner of strategic importance, both in the geopolitical & geo-economic sense. The underlying strategic point of the ECTA is evident in terms of both as it comes amidst the growing mutual concern faced by both nations in the Indo-Pacific region. More than 400 Australian companies are doing business in India and in addition, both India & Australia are members of the QUAD with India relying on Australia’s support through the QUAD and maritime security. ECTA thus could not have come at a more appropriate time.?

Australia India Economic Strategy Report 2018 highlights Education as the flagship sector that underpins the India Australia relationship. The strategy report highlights and presents one university as a case study of successful action in India: Deakin University. Deakin was the first international university to open an office in India in 1994 and has since developed a proud history of engagement in India, Bangladesh, Bhutan, Mauritius, Myanmar and Nepal for 28 years, building valued relationships in education, training, research, and recruitment. Deakin’s collaboration with India is based on preparing young India for the future through academic collaborations and more than 13,000 Indian students have benefited with skills essential to make them employable and relevant for global citizenship.?

Before COVID -19 outbreak, there were close to about 100,000 Indian students in Australia and the Indian diaspora in the country has now crossed 721,000. A lot has been said about Australia and India being natural partners, rightly so because of the inherent synergy across key areas like Education, people-to-people exchange, infrastructure, renewables, IT, services & tourism.?

ECTA reflects the confidence in the Australia India Education trade which shall continue to only grow to the mutual benefit of both countries. Building on Education trade, ECTA will facilitate extending the post-study work rights for STEM graduates and the new Maitri Scholars Program promises to bring meritorious Indian graduate students to Australian shores. The recent announcement of the setting up of an education task force by both Prime Ministers will see the ECTA help facilitate the recognition of qualifications, licensing, and registration procedures between professional services bodies. This further reflects the significant role that India has as a key strategic partner to Australia in terms of education, trade relations and cultural diplomacy.??

The energy and excitement for the growing relations are significantly palpable at both ends!!