India, Australia to sign interim free trade agreement over the weekend

The much-awaited India, Australia interim Free trade agreement (FTA) will be signed between the 2 countries over the weekend.

According to sources, all issues have been resolved between the 2 sides. India will be gaining in labour-intensive sectors like leather, gems and jewellery, In 2020, 2-way trade between both countries stood at $24.3 billion and India was Australia’s seventh-largest trading partner.

Earlier this month Indian PM Modi and Australian PM Morrison held a virtual summit, the 2nd such summit in 2 years. During the summit, PM said, “remarkable progress has been made in a very short time…The early completion of a comprehensive economic cooperation agreement (CECA) will be crucial for our economic relations, economic revival and economic security”.

Australian Trade minister Dan Tehan and Indian trade minister Piyush Goyal have held a number of talks, including many visits by the Australian minister to Delhi. Minister Tehan was in Delhi in February, during which it was decided that the interim FTA will be signed within 30 days while a comprehensive economic cooperation agreement within 12 months.

India and Australia have seen a number of engagements including the Morrison govt announcing an investment worth $280 million to increase cooperation with India. According to Australia’s Update to the India Economic Strategy to 2035, the Australian govt will provide $16.6 million to strengthen linkages with India’s financial institutions. The diaspora forms a key pillar of ties. The Indian diaspora is Australia’s fastest-growing large diaspora community. The Indian-born population became Australia’s second-largest overseas-born migrant group behind the UK-born at 721,050-strong in 2020.