Source: The Print
Context: The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed two years, marking a significant milestone in bilateral trade relations and fostering mutual growth.
About India-Australia Economic Cooperation and Trade Agreement:
- Established in: Signed in 2022.
- Nations: India and Australia.
- Features of the Agreement:
- Trade Preferences: Provides preferential market access for key goods, including textiles, chemicals, and agriculture products.
- Diversification: Promotes trade in new areas such as gold-studded diamonds and turbojets.
- Raw Material Imports: Facilitates imports of metalliferous ores, cotton, and wood products for industrial support.
- MSMEs Focus: Special emphasis on empowering MSMEs and fostering employment generation.
- Bilateral Trade Target: Aims to reach USD 100 billion in trade by 2030.
- Recent Trends:
- Trade Growth: Bilateral merchandise trade grew from USD 12.2 billion in 2020-21 to USD 26 billion in 2022-23.
- Utilization Rates: Export utilization at 79% and import utilization at 84% in 2023.
- Moderation: Total trade reached USD 24 billion in 2023-24, with India’s exports growing by 14%.
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