Bhoomika Singh
Union Minister of Commerce and Industry, Consumer Affairs, Piyush Goyal, addressed a press conference on the landmark India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA).
The minister said that duties on 100 per cent tariff lines would be eliminated by Australia under the ECTA following the approval of the Agreement by the Australian Parliament today.
Goyal said that the ECTA would give a big boost to several sectors of the economy, especially textiles, gems and jewellery and pharmaceuticals. It may be noted that 10 lakh jobs are estimated to be created as a result of the ECTA.
“Since the labour-intensive sectors will be benefitted, it is expected to create additional employment of at least 10 lakhs jobs in India, create ample opportunities for investment, and promotion of start-ups. Similarly, it would provide enhanced job opportunities for Indians in Australia and increased remittance flows to India,” Goyal said.
Also Read: Union Labour Ministry summons Amazon India over recent layoffs
He noted that the Agreement would also open new opportunities for the service sector in India and would immensely benefit students by offering them an opportunity to work in Australia. An annual Visa quota of 1800 is to be instituted for India Yoga teachers and Chefs.
The Australian parliament has announced the passing of the free trade agreement (FTA) with India, Goyal said, adding that the initial size of bilateral trade between the two countries can go up to around USD 45-50 billion in the next five-to-six years.
Australia is an important strategic partner of India and both democracies are part of the four-nation QUAD, Trilateral Supply Chain Initiative and the Indo-Pacific Economic Forum (IPEF). The trade relationship facilitated through ECTA will open a new chapter on India-Australia Comprehensive Economic Partnership between two vibrant economies with shared interests and trade complementarities.
As regards trade in services, Australia has offered wide-ranging commitments in around 135 sub-sectors. Which cover key areas of India’s interest like IT, ITES, Business services, Health, Education, and Audiovisual.
Some of the keys offers from Australia in the services space include, Quota for chefs and yoga teachers; Post study work visa of 2-4 years for Indian students on a reciprocal basis; mutual recognition of Professional Services and Other licensed/regulated Occupations; and Work & Holiday visa arrangement for young professionals.
Also Read: New-age Indian internet firms continue to bleed as startup IPO dream over
Moreover, the long pending issue under Double taxation related to IT/ITES has been resolved under this Agreement which will provide financial savings of more than US$ 200 million per year as per the estimates received from the Industry Associations.
Goyal also urged Steel Industry to make the best use of the India-Australia ECTA and look at capturing new opportunities in Australia, as he was speaking at the 3rd edition of ISA Steel Conclave in New Delhi today.
