Indian Exports Gain Zero-Duty Access to Australian Market

All Indian exports gained zero-duty market access to Australia on January 1, 2026, as part of the India-Australia Economic Cooperation and Trade Agreement (ECTA). The removal of remaining tariff barriers provides price advantages expected to enhance India's export competitiveness and shift the bilateral trade relationship in India's favor.

Despite these concessions, recent trade growth has remained modest. Government of India exports to Australia grew marginally from USD 7 billion in FY2023 to USD 7.3 billion in FY2026. However, India's trade deficit with Australia narrowed significantly, dropping from USD 12.1 billion to USD 6.5 billion over the same period. This improvement is attributed primarily to a 10% annual decline in imports from Australia rather than an increase in export volume.

Refined petroleum remains the primary Indian export to Australia. Conversely, coal remains the dominant import for India, although its share of total imports from Australia decreased from 77% in FY2023 to 45% in FY2026.