Cricket, trade and work visas: India-Australia are closer than ever

Australia and India share many things in common. We are democratic nations, that support the rule of law and we both love cricket. Australia has given the world Shane Warne, and India has given it Sachin Tendulkar. The respect shown by Indian cricket fans towards Warne and by Australian cricket fans towards Tendulkar underscores the deep affection we share for each other. It is a relationship that is growing stronger. Our nations share common values and common goals, for a peaceful, secure Indo-Pacific. We recognise that free trade drives economic growth, improves living standards and builds trust and respect between partners. The trade agreement we signed between our nations will create opportunities in both countries. It is a good deal. A trade deal that is more than tariff cuts Our trade agreement is called the India-Australia Economic Cooperation and Trade Agreement or IndAus ECTA, for short. Ekta means oneness or unity in Hindi and this agreement will further bring our two nations closer together. This historic deal will eliminate tariffs on more than 85% of Australian goods entering India and almost all of Indian goods entering Australia, upon entry into force. That means Australian exports to India of sheep meat, wool, coal, alumina, metallic ores, including manganese, copper, nickel and critical minerals will be tariff free. Likewise, for Indian exports to Australia of jewellery, cosmetics, bed linen, clothing, paints, automotive parts and furniture. In effect, Australia will get better access to the fast and rapidly growing Indian market, while Indian companies will enjoy cheap supply of energy, raw material and intermediate goods, which will make them more competitive in the global market. medium nocaption90764754 In addition to the complementary nature of bilateral trade, there are other ways in which the trade agreement will help the two economies. In India, the deal will help create hundreds of thousands of jobs in labour-intensive sectors like textiles, leather and pharmaceuticals as the huge Australian market gives better access to Indian products. In addition, the two countries have agreed to respect each other’s red lines such as India’s concern about its agriculture and dairy sectors. Opening the door to movement of people We will make it easier for our smartest people to work together by facilitating the recognition of professional qualifications, licensing and registration in both countries. This deal looks to the future. It will ensure that Australian service providers in 31 of the country’s most important services sectors and sub-sectors, including higher education and adult education; business services (tax, architecture and urban planning); insurance, banking; hospital, tourism and travel services always receive best treatment and remain competitive compared to India’s future trading partners. Australia will also eliminate the double taxation on Indian IT firms. Through IndAus ECTA, Australia will help more Indians gain the education and experience to make a contribution in both countries. Australia has offered 1,000 places in the work and holiday programme so more Indians can experience the Australian way of life. Australia will increase post-study work visa durations for Indian graduates with bachelors in STEM and ICT fields with first class honours. Through these measures, we are building enduring ties of experience and skill that will bind our countries into the future. India is the world’s fastest growing large economy. In 2020, two-way trade was valued at $24.3 billion and this deal will turbo charge our relationship. The outcomes of the trade deal The Indian government estimates that at least 1 million jobs will be created as a result of this agreement over the next four to five years. The Australian government expects exports to India to grow to around $45 billion by 2035, lifting India into our top three export markets. The Australia-India relationship is built on strong foundations. That strength is evident in our work together through the Quad to be a positive force for a free and open Indo-Pacific. The Australian government recently announced the largest single investment in the bilateral relationship with India of more than $280 million across skills, diplomacy, clean technology, critical minerals and space cooperation. We believe in the future of this relationship. A strong and prosperous Indo-Pacific is in the world’s interest. By working together both our countries can achieve more than working alone. IndAus ECTA is our unity ticket for a better future together. The writers are India’s Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, and Australia’s Minister for Trade, Tourism and Investment