HIGHLIGHTS:
- Mutual recognition of educational qualifications between the two countries would be considered.
- It will be one of the quickest free trade deals ever negotiated by India or Australia, both of which have major economies.
- Australia is looking at significant prospects in mining, education, pharmaceuticals, textiles, and renewable energy.
Before finalizing a full-fledged free trade deal, India and Australia have set an aggressive 30-day deadline for finalizing an early harvest agreement (EHA).
Tight deadline of EHA
By December 25, 2021, both countries had set a tight deadline to sign an early harvest agreement, which is a forerunner to a Free Trade Agreement (FTA) or Comprehensive Economic Cooperation Agreement (CECA).
Coverage on a large scale
After reaching an agreement on lowering import tariffs and tariff obstacles, the agreement was signed. This agreement will aid India’s export capacity. Although the particular categories that make up these sensitive categories of goods have not been confirmed, it is possible that India has excluded dairy and agricultural products from the early harvest agreement. India’s move, on the other hand, would be a setback for Australia, which has long sought market access in these two areas.
Tourism Memorandum of Understanding
Both countries have signed a tourist agreement to improve collaboration and encourage the strengthening of bilateral relations. In addition, India’s finance minister and treasury are working to resolve an outstanding investment issue that would be addressed as part of the deal. It will aid in increasing the number of Indian visitors to Australia as well as the tourism industry’s capabilities in Australia. To increase aviation capacity between the two countries, the governments will collaborate with airports and carriers.
Trade Relations between India and Australia
Australia was India’s 15th largest trading partner in fiscal year 2021. Medicines, petroleum products, gold jewellery, polished diamonds, and apparels were among the top exports to Australia. India, on the other hand, purchased coal, non-monetary gold, and alumina from Australia. In terms of services, India’s top exports were telecom and computer equipment, travel, and government and financial services, whereas Australia’s top services exports were personal travel and education.
