Australia to Remove Tariffs on All Indian Exports from January 2026
Australia will eliminate tariffs on 100% of its tariff lines for Indian exports from January 1, 2026, marking a major milestone under the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA). The move is expected to significantly deepen bilateral trade ties and create fresh opportunities for Indian exporters, particularly in labour-intensive sectors.
The development comes as India and Australia mark the third anniversary of the Ind-Aus ECTA. In a post on X on December 29, Union Commerce and Industry Minister Piyush Goyal said the agreement has translated “intent into impact”, delivering sustained export growth, wider market access and stronger supply-chain resilience for Indian businesses, including MSMEs, farmers and workers.
“As we mark the 3rd anniversary of the India-Australia Economic Cooperation & Trade Agreement (Ind-Aus ECTA), we celebrate a partnership that has translated intent into impact. Over the past three years, the Agreement has delivered sustained export growth, deeper market access, and stronger supply-chain resilience, benefiting Indian exporters, MSMEs, farmers, and workers alike,” Goyal said.
He said India’s exports to Australia grew 8% in FY 2024-25, helping improve India’s trade balance. Strong gains were recorded across manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewellery. Agricultural exports also saw broad-based growth, with notable increases in fruits and vegetables, marine products, spices and sharp growth in coffee exports. Gems and jewellery exports rose 16% during April-November 2025.
Another key milestone during the year was the signing of a Mutual Recognition Arrangement on Organic Products, which is expected to reduce compliance costs and enable smoother trade for exporters in the organic segment.
With negotiations for a broader Comprehensive Economic Cooperation Agreement (CECA) progressing, the ECTA continues to anchor India’s economic engagement with Australia and the wider Indo-Pacific region, aligning with initiatives such as Make in India and the long-term vision of Viksit Bharat 2047.
From January 2026, every product exported from India to Australia will enter the Australian market at zero customs duty. For Indian exporters, this means a direct improvement in price competitiveness against suppliers from other countries, potentially boosting volumes and margins.
Labour-intensive sectors such as textiles, leather, gems and jewellery, engineering goods, and processed food are expected to be the biggest beneficiaries, as tariff removal lowers entry barriers and expands demand. MSMEs, which often struggle with thin margins, stand to gain the most from reduced landed costs.
For Australia, zero-duty access supports stable sourcing from a trusted partner, while for India, it opens a developed market with high purchasing power and predictable trade rules.
Overall, the tariff-free access is likely to push bilateral trade beyond current levels, encourage long-term investment linkages, and reinforce the strategic economic partnership between India and Australia.
