The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA), which was inked last week between the two countries will provide greater access to Indian goods in that country and will also allow the continent nation to gain market access in India. This, in a way, would be important to New Delhi, as it can seek energy supply from Australia on a long term basis, at a time when the country is facing acute energy shortage.
According to the provisions of the trade agreement, access to Australian goods in Indian markets would be possible because the AI-ECTA has eliminated tariffs on more than 85 per cent of goods from that country on immediate basis.
With the pact enabling duty-free import of these commodities, India – which is heavily dependent on import – could make sure long term supply of the above mentioned commodities, especially coal and gas from Australia to resolve its energy crisis.
