Australia-India Comprehensive Economic Cooperation Agreement negotiations

India market snapshot

  • GDP: US$1.870 trillion (2013)
  • GDP per capita: $1,504.5 (2013)
  • GDP growth: 4.4 per cent (2013)
  • Population: 1,243.3 million (2013)
  • Trade with Australia: AU$15.2 billion (2013)

About the Australia-India Comprehensive Economic Cooperation Agreement negotiations

Recent years have seen remarkable growth in the trading relationship between India and Australia, fuelled by the many complementarities between the two economies. Two-way trade has grown in value from $5.1 billion in 2003 to $15.2 billion in 2013.

India is the world's largest democracy and is a market of 1.2 billion people. Its youthful population, diversified economy and growth trajectory present significant opportunity for Australian business, especially in the agriculture, energy, manufacturing, mining and services sectors.

On 12 May 2011 then Trade Minister Craig Emerson and then Indian Minister for Commerce and Industry Anand Sharma formally launched negotiations to conclude a Comprehensive Economic Cooperation Agreement between Australia and India. Then Prime Minister Singh and then Prime Minister Gillard reaffirmed the importance of achieving a high quality agreement during then Prime Minister Gillard's 15-17 October visit to India. Australia will be seeking a comprehensive and truly liberalising agreement, consistent with the government’s trade policy. Similar to the elements covered in Australia’s existing bilateral Free Trade Agreements, a Comprehensive Economic Cooperation Agreement would include coverage of investment and trade in goods and services.

The Department is seeking public submissions on the Comprehensive Economic Cooperation Agreement negotiations.

Key interests and benefits

  • A comprehensive agreement would assist in broadening the base of merchandise trade by addressing tariff barriers and behind the border restrictions on trade in goods.
  • There is significant potential to expand trade in services between India and Australia. An FTA could facilitate growth in services trade by reducing barriers faced by Australian service suppliers and by increasing regulatory transparency.
  • An FTA could facilitate and encourage investment by reducing barriers, increasing transparency and enhancing investment protections.

Map of India - quick facts

Map of India

Mumbai

A major centre of Indian economic growth, Australian companies including Leighton, Linfox, ANZ Bank, Macquarie Group, IAG and Qantas all maintain a presence in Mumbai.

Vizag

When upgrades are complete in 2013, this port will handle up to 6 million tonnes of coal imports per year.

Chennai

Sydney-based iSoft, provider of health services technology, has established a dedicated development centre in Chennai.

Submissions

The Department of Foreign Affairs and Trade welcomes submissions from interested individuals and groups on the potential outcomes and impacts of a Comprehensive Economic Cooperation Agreement with India. Submissions need not be lengthy and may build on or refer to submissions made during the joint feasibility study on a bilateral free trade agreement.

In particular, information is sought on specific interests and issues in relation to Australia’s trade, investment and economic cooperation with India, including barriers to trade and investment faced by Australian goods and services exporters and investors in India.

Submissions will be made publicly available and posted on this website unless the author specifies otherwise.

Guidance on preparing submissions

Interested parties are encouraged to lodge their submissions. Submissions should be lodged through at least one of the following options:

  • Email: indiafta@dfat.gov.au
  • Mail:
    Australia-India Comprehensive Economic Cooperation Agreement
    Free Trade Agreement Division
    Department of Foreign Affairs and Trade
    RG Casey Building
    John McEwen Crescent
    Barton ACT 0221

Recent submissions

For business

Austrade has identified potential opportunities for Australian suppliers of goods and services in a number of sectors. Austrade's India country page supplies general information on doing business and on specific export opportunities. The Austrade website has a database that can be searched by industry.

Resources

Joint Feasibility Study

In April 2008, Australia and India began a joint feasibility study to examine the merits of a bilateral free trade agreement. The study, which includes an independent economic modelling component, examined the potential impact on Australia and India of a free trade agreement, including implications for economic growth, trade in goods and services, investment and other commercial linkages. The completed study is available below:

The study found that a comprehensive free trade agreement covering goods, services and investment between Australia and India could lead to a substantial increase in trade in goods, that there is further potential in trade in services and considerable scope for enhanced investment links.

The Department of Foreign Affairs and Trade would like to thank all those who contributed submissions to the Australia-India Free Trade Agreement Joint Feasibility Study.

More about India

Contact us

Requests for information, advice or comments on the free trade agreement should be addressed to:

  • Mail:
    Australia-India Comprehensive Economic Cooperation Agreement
    Free Trade Agreement Division
    Department of Foreign Affairs and Trade
    RG Casey Building
    John McEwen Crescent
    Barton ACT 0221
  • Phone: 02 6261 2972
  • Email: indiafta@dfat.gov.au

For media enquiries please call DFAT Media Liaison Section on (02) 6261 1555.