Tariffs are gone. Now, let’s build on India-Australia pact

Prime minister Narendra Modi with Australian prime minister Anthony Albanese. (PTI/File)

As of today, January 1, 2026, no Indian goods face any tariff entering Australia. None. Zilch, nada, zippo across the board. No asterisk. No hash. No fine print.

Three years after the Australia-India Economic Cooperation and Trade Agreement (ECTA) came into force, Australia has eliminated every last tariff on Indian exports. That’s completely free access to Australia’s nearly $2-trillion economy. And in return, many Australian goods now enter India under reduced or zero duties.

That’s good for both countries. Driven by ECTA, trade between Australia and India has crossed 50 billion Australian dollars, or Rs 3 lakh crore, for the first time. Over the past five years, our two-way goods trade has doubled. And Australian commodity exports to India have grown strongly, fuelling “Make in India”.

Meanwhile, India’s exports to Australia have expanded much faster than to the rest of the world. Consider this: Over the last five years, India’s global goods exports have grown 40 per cent. Not bad, right? Yes, but over the same period, India’s goods exports to Australia were up 200 per cent. So, India is benefiting from trade with Australia five times faster than it is from the rest of the world. Ripper.

And these aren’t just numbers. They mean economic activity — and jobs for Indians and Australians. One in four jobs in Australia is linked to trade, and with billions in Australian exports now going to India each year, I estimate around 200,000 jobs in my country are tied to trade with India.

In this country, Minister of Commerce and Industry Piyush Goyal has said ECTA will create 1 million jobs. And with the growth we’ve seen, I’d be surprised if we hadn’t hit that number already.

This isn’t unexpected. Our economies are a natural fit. They click. Australia has what India needs: The critical minerals, rare earths and skilling expertise that will supersize Indian manufacturing. And India has what Australia needs: Quality manufactures and bonza agriculture products that suit the tastes of modern Australia.

You can see that complementarity when walking the streets of Australian cities. You will see Mahindra selling cars in showrooms. You will see supermarkets stocking produce from Indian farms. And you will see Indian-made garments for sale at major retailers. These products aren’t just consumed by our Indian diaspora, now more than 1 million strong. They are enjoyed by Australians at large.

This success matters even more today. As global trade becomes unpredictable, Australia remains a reliable and committed partner for India. Three days ago, Minister Goyal said that India’s relationship with Australia anchors India’s economic engagement in the Indo-Pacific. As he put it, “India and Australia are building a future of shared prosperity and trusted trade.” I couldn’t agree more.

That’s why Australia and India want to go farther. We’re working to upgrade ECTA into a Comprehensive Economic Cooperation Agreement, or CECA.

This can strengthen trade and investment ties across goods and services, and support new critical minerals supply chains. In November, Goyal and Australia’s Minister Farrell reaffirmed their commitment to conclude CECA as soon as possible.

And that’s not all: Last year ,my Prime Minister released A New Roadmap for Australia’s Economic Engagement with India, which details how Australia can contribute to and benefit from India’s economic rise.

Looking back, it’s clear ECTA has given Australia and India an excellent start — and that we have a lot more to do together. I can be frank with you: Over the years, trade with Australia has helped power some of the Indo-Pacific’s biggest economies to prosperity. Australia can help India do the same, to the benefit of both our great nations.