India-Australia deal seeks to double bilateral trade in 5 years

India and Australia signed an Economic Co-operation and Trade Agreement (ECTA) on Saturday in the presence of Prime Minister Narendra Modi and his counterpart in Canberra Scott Morrison, with an eye on doubling bilateral trade to $50 billion in five years and ease movement of people, goods and services across borders.

The agreement with Australia, which Commerce and Industry Minister Piyush Goyal expects would create 10 lakh additional jobs in the country over the next five years, was described as a ‘watershed moment in bilateral ties’ by Mr. Modi.

On the basis of this agreement, together, we will be able to increase the resilience of supply chains, and also contribute to the stability of the Indo-Pacific region,” he said about the deal that will facilitate work visas for two to four years for Indian students in Australia on a ‘reciprocal basis’ and allow Indian chefs and yoga professionals to work Down Under.

The trade and economic partnership deal with Australia, which is in the midst of a protracted trade battle with China, is a significant milestone at a time when the developed world is looking to hedge its supply chain dependence. A government statement noted that this is also the first such pact signed by India with a developed country in a decade.

Mr. Morrison said the deal “opens a big door into the world’s fastest growing major economy for Australian farmers, manufacturers, producers and so many more”.