Australia to Offer Zero-Duty Market Access for All Indian Exports from 2026

Australia Eliminates Tariffs on Indian Exports

Australia has announced that it will remove customs duties on 100 per cent of its tariff lines for Indian exports from January 1, 2026 , marking a major milestone under the India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) . The move coincides with three years of the agreement’s implementation and represents a significant step toward deeper economic integration between the two countries.

What Zero-Duty Access Means

From 2026 onward, all Indian goods entering Australia will enjoy tariff-free access , enhancing their price competitiveness in a high-income and rules-based market. The decision is expected to strengthen bilateral supply chains and encourage long-term trade partnerships, particularly in sectors where India holds a comparative advantage.

Export Performance and Key Growth Areas

Union Commerce and Industry Minister Piyush Goyal noted that India’s exports to Australia grew by 8 per cent in FY 2024–25 , helping improve the overall trade balance. Strong gains were seen in manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewellery. Agricultural exports such as fruits, vegetables, marine products, spices and coffee also recorded steady growth. Notably, gems and jewellery exports rose by 16 per cent during April–November 2025 .

Boost for MSMEs and Labour-Intensive Sectors

The tariff elimination is expected to particularly benefit MSMEs and labour-intensive sectors including textiles, leather, engineering goods, processed food, and jewellery. Lower landed costs will improve export margins and volumes, making it easier for smaller firms to scale operations. For Australia, the arrangement ensures reliable sourcing from a trusted Indo-Pacific partner.

Towards Deeper Economic Integration

Negotiations are ongoing for a broader Comprehensive Economic Cooperation Agreement (CECA) , with the ECTA serving as a foundational framework. The tariff-free regime aligns with Make in India and Viksit Bharat 2047 , supporting India’s goals of export expansion, investment attraction and resilient global partnerships.

Important Facts for Exams

• Ind–Aus ECTA came into force in December 2022

• Australia will offer zero-duty access on all tariff lines from January 1, 2026

• MSMEs and labour-intensive sectors are major beneficiaries

• India and Australia signed an MRA on organic products