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Australia-India ECTA benefits for Australian manufacturing [PDF 1.8 MB]
The Australia-India Economic Cooperation and Trade Agreement (ECTA) will benefit Australian manufacturing exporters by eliminating or reducing tariffs on a wide range of products. The agreement offers opportunities for our exporters to diversify into a $4.3 trillion market of nearly 1.5 billion people.
ECTA will help Australian manufacturers strengthen their supply chain resilience, enhance trade diversification and address supply chain risks while better connecting our two complementary and stable economies. For example, the elimination of India's tariffs on processed minerals puts Australia in prime position to support India's ambition in taking a major role in global advanced manufacturing while supporting an increase in local processing.
Under ECTA, India's tariffs of up to 20 per cent on many consumer goods will be removed, including on pharmaceutical products, vitamins and cosmetics. Industrial machinery tariffs of up to 10 per cent will be eliminated, including for mining equipment and parts, railway parts and for pumps and filters. Tariffs of up to 20 per cent on wood and paper products will also be eliminated.
High tariffs of up to 50 per cent will be eliminated on a wide range of processed foods, including infant formula, corn flakes and other breakfast cereals, pasta, malt, olive oil and protein concentrates.
Australian manufacturers stand to benefit from lower Australian tariffs on Indian imports, helping them reduce input costs and diversify suppliers.
Enhanced trade facilitation under ECTA
New rules to facilitate trade will give Australian traders greater certainty. Advance rulings on tariff treatment under ECTA, as well as streamlined documentation requirements will allow for faster processing of goods. These benefits are additional to the WTO Trade Facilitation Agreement.
| Goods | Highlights |
|---|---|
| Pharmaceutical products | Elimination of 10% tariff |
| Cosmetics | Immediate elimination of 20% tariff |
| Vitamins | Elimination of 7.5% tariff |
| Wood and paper products | Elimination of tariffs of up to 20% |
| Liquid Pumps | Elimination of tariffs of up to 10% on a range of pumps |
| Furniture and bedding | Elimination of 25% tariff on furniture and bedding, including immediate removal of the tariff on spring mattresses |
| Water filters | Elimination of tariffs of up to 10% |
| Lifting machinery for mines | Elimination of tariffs of up to 7.5% |
| Excavating and boring parts | Elimination of tariffs on most parts for excavating and boring machines |
| Railway equipment parts | Immediate elimination of 10% tariff |
| Processed foods | Elimination of tariffs up to 50% for a wide range of food products including infant formula, certain chocolates, breakfast cereals, pasta, olive oil, protein concentrates, prepared nuts, coffees and teas |
| Processed fibres | Elimination of tariffs of up to 10% on processed wool and cotton fibres |
| Processed minerals | Elimination of tariffs of up to 10% on a wide range of processed minerals including alumina, titanium dioxide and critical minerals |