Commerce and Industry Minister Piyush Goyal on Tuesday said that under the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), duties on 100 per cent tariff lines would be eliminated by Australia.
The Ind-Aus ECTA was earlier ratified by the Australian parliament for its implementation.
Addressing a press conference, Goyal said that the agreement will come into force soon on a mutually convenient date once both the sides have completed their domestic processes.
He said that the ECTA would give a big boost to several sectors of the economy, especially textiles, gems and jewellery and pharmaceuticals.
As many as 10 lakh jobs are estimated to be created as the result of the ECTA.
Goyal noted that the agreement would also open new opportunities for the service sector in India and would immensely benefit students by offering them an opportunity to work in Australia.
In fact, he informed that an annual visa quota of 1,800 is to be instituted for Indian yoga teachers and chefs.
The ECTA provides for an institutional mechanism to encourage and improve trade between the two countries.
It is expected that with this agreement, the total bilateral trade will cross $45-50 billion in five years from the existing $31 billion.
India's merchandise exports is likely to increase by $10 billion by 2026-27.
Moreover, since the labour-intensive sectors will be benefitted, it is expected to create an additional 10 lakhs jobs in India, while setting up ample opportunities for investment and promotion of start-ups, the minister said.
Similarly, it would provide enhanced job opportunities for Indians in Australia and increased remittance flows to India, he added.
Make best use of India-Aus trade pact, Goyal tells steel industry
Commerce Minister Piyush Goyal on Tuesday urged the domestic steel industry to make best use of the India-Australia Economic Cooperation & Trade Agreement (ECTA) Agreement and look at capturing new opportunities in Australia.
He said this while speaking at the 3rd edition of ISA Steel Conclave.
"Developed countries recognise that the Indian economy will drive world growth," he said.
He highlighted that post agreement with Australia, all of India's steel exports to Australia will become duty free. He urged the industry to make best use of this agreement and look at capturing new opportunities in Australia.
The minister further said that these trading agreements with developed countries will usher in new opportunities "for our youth and businesses across sectors".
The Australian Parliament earlier on Tuesday ratified the ECTA.
Goyal said the steel industry is a major stakeholder, contributing significantly to the export earnings.
He urged the steel producers to strive to develop Brand India and observed that the steel industry is the low hanging fruit in India's integrated efforts to create global recognition of Indian products.
On withdrawal of export duty on steels and various steel products, Goyal explained that duty was imposed as a temporary measure to maintain price stability and maintain growth momentum in the country. He said these actions taken by the government have resulted in reining in inflation.
The minister appreciated the steel industry for understanding the problem and fully supporting the government's action.
"The government's effort has been to protect the Indian Steel Industry through 'Melt and Pour' provision in our FTAs," he said, assuring that through this provision only, steel that is produced locally in those countries can be imported into India.
He opined that Indian steel industry will continue to have an edge in the international market with the removal of duties on steel exports.
Noting that availability of coking coal is a major challenge for the steel industry, Goyal urged the industry to collaborate with eminent institutions and undertake research to find alternate solutions for this.