Exporters line up shipments for Australia
Australia will provide zero-duty access to India for 100% of its tariff lines—98.3% from day one and the remaining 1.7% in a phased manner in five years.
PremiumNEW DELHI : Pharmaceuticals, apparel, jewellery, transmission line towers and millets are among key items that will be shipped from India on the first day of the India-Australia free trade agreement coming into force on Thursday.
These are part of the 98.3% of tariff lines that will immediately gain zero duty access from Thursday, while some more sectors of another 113 tariff lines are gearing up to benefit from the phasing out of the duties that begin from 1 January. The agreement will give a boost to India’s exports, which are facing headwinds from moderating global demand.
“About 200 kg of antimicrobial drugs from a Mumbai-based pharma company is part of the first consignment under the India-Australia ECTA agreement," a person aware of the development said.
The pact, which was signed in April and ratified by the Australian parliament last month, is expected to double bilateral commerce to $45-50 billion in around five years, according to government estimates.
As per commerce ministry data, India’s goods exports to Australia grew by 20% to $4.7 billion in the April-October period. ECTA will benefit sectors including textiles, leather, furniture, jewellery, machinery and select medical devices.
In turn, India has offered immediate tariff elimination on 40% of its tariff lines comprising 85% of Australian exports in value terms while another 30.3% of its tariff lines will see elimination or reduction in 3,5,7 and 10 years time.
Saint Gobain Glass, is sending five containers of float glass on Thursday at zero duty, as against 5% duty that was levied as of now. “We are a glass manufacturing company and we have customers across the globe. We will be sending shipments containing Magnetron Coated Float Glass at zero duty, as against 5% pre-ECTA." said Ramanandan R.V., Team Leader-Exim Benefits at Saint-Gobain Glass India.
According to sources in the know, a transmission tower shipment worth $230,000 is also part of the first ECTA consignment to Australia.
Meanwhile, the department of commerce is holding outreach programmes with various export promotion councils and industry associations, urging them to utilize the ECTA with Australia.
The deal will provide immediate zero duty access to 98.3% of tariff lines accounting for 96.4% of Indian exports to Australia in value terms.
“Two of our exporters are sending goods worth $17 million on the first day of ECTA ratification," said a person heading an exporters association.
Queries emailed to the department of commerce on Wednesday remained unanswered till press time.
Australia will provide zero-duty access to India for 100% of its tariff lines—98.3% from day one and the remaining 1.7% in a phased manner in five years.
“While several exporters will ship consignments on the first day of ratification of ECTA, more exporters will join on 1 January, 2023, as duty benefits for the remaining 1.7% of tariff lines will come into effect. The second year of ECTA will not kick in from December 29, 2023, but from 1 January, 2023," said Ajay Sahai, DG and CEO, Federation of Indian Export Organisations (FIEO).
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