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.