The numbers behind India and Australia’s $100-billion trade target

The numbers behind India and Australia’s $100-billion trade target
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India and Australia signed an interim free trade agreement on April 2. The India-Australia Economic Cooperation and Trade Agreement “provides zero duty exports to 100% tariff lines from India to the Australian market, benefiting labour-intensive sectors besides providing greater access to services space through liberalised visa norms for students and professionals, including quota for Indian chefs and yoga teachers. Australia will be able to supply various raw materials and intermediaries at zero duty,” HT reported on April 7. The two countries are “negotiating a more comprehensive agreement on goods and services, which may also include movement of skilled and agricultural labourers to the continent”.

“The two economies are not competing, but complementing each other. Sector by sector analysis show that $100 billion trade can be achieved by 2030,” commerce minister Piyush Goyal said on April 6 in Melbourne.

What does past data on India-Australia trade tell us about the prospects of this trade pact? Here are charts to explain this in detail.

India-Australia bilateral trade ties
India-Australia bilateral trade ties


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