India-Australia trade expands under ECTA as Modi visit targets $100 billion by 2030

Trade climbs under ECTA

Bilateral trade between India and Australia continues to expand under the India-Australia Economic Cooperation and Trade Agreement (ECTA), with total two-way commerce reaching $24.1 billion — more than 2 lakh crore rupees — during the 2024-25 financial year, according to patrika.com. The report ties the momentum to Prime Minister Narendra Modi's visit to Melbourne, which business figures in Australia described as well-timed for deepening commercial ties with India. During the trip Modi met Australian Prime Minister Anthony Albanese.

Both governments are now negotiating an expanded Comprehensive Economic Cooperation Agreement (CECA) aimed at further lowering barriers in services and key investment areas. The talks build on the ECTA framework, which is already reshaping the flow of goods between the two economies. Industry executives cited by patrika.com said the two economies hold complementary strengths and that recent engagement has opened new areas for cooperation.

What each country ships

India's main exports to Australia are petroleum products, pharmaceutical formulations, polished pearls, precious stones and machinery, alongside engineering goods, textiles, garments, and gems and jewellery, patrika.com reported. Australia, in turn, mainly supplies bulk minerals, coal and gold, together with agricultural commodities such as raw cotton and pulses. The pattern reflects India's role as a processor and manufacturer and Australia's position as a supplier of raw materials and resources.

Tariff terms

Under the ECTA, all Indian exports receive 100% duty-free access to the Australian market. In return, India provides preferential market access covering roughly 90% of Australia's trade value, according to patrika.com. That balance leaves limited room for further tariff cuts on the Indian side and shifts the focus of the new CECA talks toward services and investment.

Toward a broader agreement and business response

The two countries have set a target of raising bilateral trade to $100 billion — about 9.53 lakh crore rupees — by 2030. Reaching that level would require a substantial jump from the current $24.1 billion base, with negotiators concentrating on services and investment flows rather than goods tariffs that the ECTA has largely eliminated on the Indian side.

Australian business leaders welcomed Modi's address at the Australia CEO Forum. Anil Advani, founder of Amor Advisory, said the prime minister's remarks reflected both sincerity and a joint resolve to deepen bilateral cooperation. Vidhi Ashik Modi, founder of Pinnacle Advisors, pointed to strong potential for closer ties across the Indo-Pacific once cooperation advances. Harshad Kale, a founder and director, said the visit had deepened India-Australia relations, adding that Australia increasingly views India as a strategic economic partner while India's rapid growth offers attractive opportunities for Australian businesses and investors. The report was based on input from news agency ANI.