India-Australia trade jumps to $27.8 bn in 10 years: India Exim Bank study

New Delhi: Closer ties between India and Australia have revamped the global trade landscape with the trade between the two countries recording a significant growth to $27.8 billion from $15.6 million a decade ago, according to a study by India Exim Bank, released on Tuesday.

The significant growth in trade is the outcome of India’s trade relations with Australia that have transformed considerably over ten years. Trade volume between both the nations was just $15.6 million in 2012.

India and Australia entered into an Economic Cooperation and Trade Agreement (ECTA) last year in April and after ratification and exchange of written instruments, the agreement came into force on 29 December 2022.

About 96% of India’s imports from Australia are primarily raw materials and intermediate goods such as coal. India imports about 74% of coking coal from Australia. India’s exports to Australia are dominated by finished products, particularly consumer goods.

The India Exim Bank’s study noted that transforming the ECTA into a Comprehensive Economic Cooperation Agreement (CECA) would make ECTA capitalise on the potential for closer economic ties between the two nations.

The study mentioned that the potential areas for India-Australia cooperation under the CECA could include support to small and medium enterprises, promotion of digital trade, trading in geographical indication certified goods, settlement of trade payments in local currencies, strategic alliance for sourcing critical minerals, government procurement, agri-technology partnership and partnership in renewable energy, etc.

The study was released by India Exim Bank managing director Harsha Bangari and Export Finance Australia (EFA) CEO John Hopkins during the sidelines of the Asian Exim Bank Forum (AEBF) annual meeting held at Sydney.

The AEBF was formed by Export-Import Bank of India for Asian Export Credit Agencies (ECAs) to exchange information for fostering trade ties.