Australian agriculture exports to India have surged 50 per cent in the last year after a free trade agreement was inked between the two nations. The boost to sheep meat, seafood, broad beans, citrus and almonds has also been supplemented by a 30 per cent increase in industrial exports, such as pharmaceuticals, wood and paper and cochlear implants. Tariffs on more Australian exports to India, including on seafood, cherries, sandalwood and wine, are also set to make businesses more competitive from January 1. Australian businesses saved through lower taxes on $15.2 billion worth of exports to India between January and September after the pact came into force. Households saved $145 million in duties on imported goods such as clothing, linen and electrical parts. The trade agreement has strengthened Australia's economic relationship with India and paved the way for cheaper goods and services, Trade Minister Don Farrell said. It has also helped to ease pressure on supply chains in Australia's manufacturing, resource and construction industries by boosting access to tubes, pipes and off-road dump trucks, he said. “India represents a massive opportunity for Australian business to diversify into new growing markets,” he said. “In the year since this agreement came into effect, we have seen enormous gains for a range of Australian exporters, including our farmers, manufacturers, and our universities. “This is a relationship we need to invest in and I look forward to working with India to take our trade agreement to the next level.” The free trade agreement has been hailed by Australian farmers and business groups as economic ties strengthen and market access increases. Two-way trade between the nations was worth $46.5 billion in 2022. Canberra and New Delhi are also negotiating a comprehensive economic co-operation agreement that would boost digital trade and further market access for Australian agricultural products, particularly wine. Both sides had hoped to seal the deal by the end of the year but there had been “significant issues” as negotiations continued, a Department of Foreign Affairs and Trade official said. Australian wine producers have been seeking to diversify markets after China imposed punitive tariffs in 2020, with India's 1.4 billion strong nation seen as a ripe opportunity.
