Exporters Cheer Zero-Duty Access In Australia From Jan 1 But Remain Wary of Aggressive Pricing By Chinese

New Delhi, Dec 31 (KNN) As all Indian exports to Australia become zero-duty starting new year, exporters are optimistic about pick-up in shipments but remain concerned about aggressive pricing by Chinese firms in the key market.

"Many countries such as Vietnam, Bangladesh, and Pakistan have been enjoying duty-free access in Australia. Now with zero-duty access for Indian exports we will have advantage to that extent. Definitely there is going to be an increase in market share but it all depends on how we deliver our goods and service our customers," Mecca Rafeeque Ahmed, Chairman of Farida Group told KNN India over phone.

Farida Group is one of the leading manufacturers and exporters of footwear and finished leather.

On being asked about experience in the last three years ever since India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) was signed, Ahmed said that his firm has not been able to expand much.

"We have not been able to penetrate much because the Chinese have emerged as very strong competitors. They are able to offer much lower price. Many Chinese firms have also set up their units in Australia for importing and distributing. Some businesses have increased but substantial numbers have not come yet," he said.

Union Commerce and Industry Minister Piyush Goyal on December 30 announced that 100% Australian tariff lines will be zero-duty for Indian exports from 1st January 2026. He also said that Ind-Aus ECTA remains key to India’s Indo-Pacific engagement.

India is currently in the advanced stage of negotiations with Australia for a Comprehensive Economic Cooperation Agreement (CECA) to further expand the scope of bilateral trade.

Speaking to KNN on Indian exports becoming duty-free in Australia, Arun Kumar Garodia, Managing Director of Corona Steel Industry Pvt Ltd said that engineering goods exports to Australia have been doing well post Ind-Australia ECTA.

"With duties being removed, Indian goods going to Australia will certainly have some advantage. Many companies as part of their China plus One strategy have been looking at India. It is tough to compete with Chinese across many items but with duty going away the scope of expanding our presence there certainly increases," he said.

Garodia, former chairman of apex engineering exports promotion body EEPC India, said his company is planning to resume exports to Australia in the near future after halting it earlier.

Bilateral merchandise trade between India and Australia stood at US$24.1 billion in the financial year 2024-25, up 8% over the previous year.

(KNN Bureau)