Ind-Aus ECTA to create additional 10 lakh jobs in India: Union Minister Piyush Goyal

Mumbai, Dec 29 (KNN) The India-Australia Economic Cooperation and Trade Agreement (ECTA) has come into effect from Thursday i.e., December 29, 2022 and is estimated that an additional 10 lakh jobs would be generated in India under the pact, said Union Commerce and Industry Minister Piyush Goyal.

The ECTA was signed on April 2, 2022, ratified on November 21, written notifications were exchanged on November 29 and after 30 days it has come into effect.

Addressing industry representatives and the media in Mumbai on Thursday, the Minister said, “There is a lot of potential for exporting finished goods to Australia, since they hardly manufacture anything, they are largely a raw material and intermediate producing country, we will get cheaper raw materials which will not only make us more competitive globally but also enable us to serve Indian consumers better; enabling us to provide more quality goods at more affordable prices.”

“Australia, which is largely dependent on imports, will benefit hugely, they will soon start seeing a lot more finished goods coming in from India, providing huge amount of work and job opportunities in both goods and services, provided by Indian talent,” he said.

The Agreement will also eliminate Double taxation on IT services which was making India less competitive and less profitable in IT sector.

Double taxation has now been removed by amending the law, from April 1, double taxation for IT sector will be over.

“We will save millions and millions of dollars right now, and over a billion dollars going forward, maybe 5 - 7 years going forward, giving us competitive edge and also creating a lot many jobs,” said the minister.

Appreciating the Australian government he said, “Products like agricultural products and dairy sector - which were very sensitive for India and without which Australia has never done an agreement before - have been protected, I am hugely grateful to the Australian government for this.”

The Ind-Aus ECTA provides an institutional mechanism to encourage and improve trade between the two countries. It covers almost all the tariff lines dealt by India and Australia.

India will benefit from preferential market access provided by Australia on 100 per cent of its tariff lines, including all the labour-intensive sectors of export interest to India, such as Gems and Jewellery, Textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical devices and Automobiles.

On the other hand, India will be offering preferential access to Australia on over 70 per cent of its tariff lines, including lines of export interest to Australia, which are primarily raw materials and intermediaries such as coal, mineral ores and wines.

With regard to trade in services, Australia has offered wide-ranging commitments in around 135 sub-sectors and Most Favoured Nation (MFN) status in 120 sub-sectors covering key areas of interest to India.

On the other hand, India has offered market access to Australia in around 103 sub-sectors and Most Favoured Nation status in 31 sub-sectors from the 11 broad service sectors such as ‘business services’, ‘communication services’, ‘construction and related engineering services’, and so on.

Both sides have also agreed to a separate Annex on Pharmaceutical products under this agreement, which will enable fast-track approval for patented, generic and biosimilar medicines.  (KNN Bureau)