With this agreement, the total bilateral trade is expected to cross $45-50 billon in five years from existing $31 billon.
Both the countries are in complementary ties in its trade opportunities. Hence it will help in resilient supply chain wherein cheaper raw materials and intermediate products from Australia will be made available to make the finished product competitive, official sources said.
It is further estimated that an additional 10 lakh jobs would be created in India under ECTA. Indian Yoga teachers and chefs are set to gain with the annual visa quota.
Also over 1 lakh Indian students would benefit from post-study work visa of 1.5 to four years duration under the ECTA.
The agreement is also likely to increase investment opportunities, promote exports, create significant additional employment and facilitate strong bonding between the two countries.
On Wednesday, both the countries exchanged written notification to implement the pact, which will come into effect from December 29.
“India & Australia consolidate their long-standing partnership. Economic Cooperation & Trade Agreement, realised under the guidance of leaders on both countries, comes into effect from December 29, 2022. It is the dawn of a whole new era for our businesses & people,” Commerce Minister Piyush Goyal had tweeted.