Australia’s zero-duty regime opens wider market for Uttar Pradesh food exporters
All Indian exports became eligible for zero-duty access to Australia on 1 January 2026 under the India–Australia ECTA. Uttar Pradesh’s food and agricultural suppliers now have a clearer tariff advantage, but origin rules, certification and Australian import requirements remain decisive.
Final tariff phase-out expands access
Food and agricultural exporters in Uttar Pradesh have gained broader access to the Australian market after the final tariff reductions under the India–Australia Economic Cooperation and Trade Agreement, or ECTA. News18 reported that the agreement’s effect is now becoming visible for businesses on the ground, with Australia’s duty-free market opening new opportunities for suppliers from the state.
The agreement was signed on 2 April 2022 and entered into force on 29 December 2022. According to India’s Ministry of Commerce and Industry, Australia granted preferential access across 100% of its tariff lines. Some 98.3% became duty-free immediately, while the remaining 1.7%, covering 113 tariff lines, was scheduled for elimination over five years. From 1 January 2026, all Indian exports became eligible for zero-duty access to Australia.
Trade has grown under ECTA
Official Indian data show that merchandise flows expanded after the agreement took effect. Bilateral trade reached $24.1 billion in the 2024–25 financial year. Indian exports to Australia rose from $4 billion in 2020–21 to $8.5 billion in 2024–25 and recorded 8% year-on-year growth in 2024–25, according to the Ministry of Commerce and Industry. Total trade amounted to $19.3 billion in 2025–26 through February.
The ministry identified agricultural products among the sectors recording broader gains under ECTA, alongside textiles, pharmaceuticals and chemicals. For Uttar Pradesh, the removal of the remaining Australian duties improves the commercial position of food and agricultural goods, particularly when exporters compete with suppliers whose products still face tariffs. The agreement removes one cost at the border, but it does not by itself guarantee orders, suitable logistics or acceptance by Australian authorities.
Compliance remains the market test
Australian government guidance states that only goods originating in India or Australia qualify for preferential treatment. Exporters must identify the correct tariff classification, satisfy the applicable rule of origin and provide supporting documentation, including a certificate of origin. These requirements prevent goods from third countries from obtaining the preference through simple transshipment. For processors, the origin test can also affect decisions about imported ingredients and the documentation maintained across the supply chain.
Food shipments face an additional commercial reality: duty-free entry is not the same as inspection-free entry. SBS Hindi reported that Indian food and agricultural exporters promoted their products at buyer-seller meetings in Sydney and Melbourne while emphasizing the need to meet Australian compliance requirements. Uttar Pradesh exporters therefore need to combine the tariff benefit with product-specific checks covering eligibility, certification and import conditions. The opportunity is measurable—a zero Australian tariff across Indian exports—but its value will depend on whether producers, processors and traders can convert that preference into compliant, consistently supplied contracts.