India’s Foreign Policy

India’s Foreign Policy

India – Australia ECTA comes into force 

  • Economic and Cooperation Trade Agreement (ECTA) provides an institutional mechanism to encourage and improve trade between India and Australia and covers almost all tariff lines dealt by the two countries.
  • After the India-UAE Comprehensive Economic Partnership Agreement, ECTA will be the second trade agreement for India that will be operationalised in 2022.

Benefits of signing ECTA.

  • Raise bilateral trade to USD 45-50 billion in next five years.
  • Create an additional employment of at least 10 lakhs jobs in India.
  • Create opportunities for investment, promotion of start-ups. 

Key features of ECTA

  • India will benefit from preferential market access provided by Australia on 100% of its tariff lines, including all labour-intensive sectors of export interest to India, such as Gems and Jewellery, Textiles, leather, footwear etc.
  • Australia has offered wide ranging commitments in several services sub-sectors like IT, ITES, Health, Education.
  • A separate Annex on Pharmaceutical products which will enable fast-track approval for patented, generic and biosimilar medicines.
  • Covers areas like Rules of Origin, Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, Movement of Natural Persons etc.
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