India Gets Duty-Free Access to Australia — What This Means for Exporters

From January 1, 2026, Indian exports to Australia will enjoy full duty-free access as a key milestone under the India–Australia Economic Cooperation and Trade Agreement (ECTA) has officially come into effect. This development marks a major milestone in the bilateral trade and opens up new opportunities for Indian exporters.

Under the ECTA framework, Australia will eliminate customs duties on 100 % of Indian tariff lines — meaning all Indian exports can enter the Australian market without any import tax from this year onward. Previously, most Indian goods already had preferential access, but this full tariff removal represents a significant upgrade in market access that goes beyond earlier phases of the agreement.

This duty-free status applies to goods across many key sectors, including but not limited to:

• Textiles & apparel

• Gems & jewelery

• Leather & footwear

• Engineering goods and machinery

• Automobiles and auto parts

• Food and agricultural products

• Medical devices and pharmaceuticals

These sectors together represent some of India’s largest export lines and stand to benefit the most from the complete tariff elimination in the Australian market.

What ECTA Originally Set Out to Do

The Economic Cooperation and Trade Agreement between India and Australia was first implemented on December 29, 2022, as one of India’s most significant trade agreements with a developed economy. The pact gradually reduced tariffs on Indian exports and Australian goods entering India.

Under the agreement, tariff elimination had been phased in over time — starting with most export lines in earlier years and now culminating in complete duty removal for India’s exports. In return, India offered preferential tariff treatment on over 70 % of Australian tariff lines, particularly for raw materials and intermediates such as coal, mineral ores, and wine.

What does This Means for Indian Exporters

More Competitive pricing for Indian Goods - Zero duties will significantly reduce landed costs for Indian products in Australia, making them more price-competitive against goods from other countries that still attract tariffs.

The coming into effect of duty-free access for all Indian exports under the India–Australia ECTA is a historic moment for trade for both the countries.

Image credit - AI