Following EU and India’s recent efforts to restart the long-halted free trade agreement, there are now talks of resumption of trade deal talks between India and Australia.
If and when this happens, it could end up giving big give boost to India’s apparel exports.
The official level discussions between both the countries, especially with regard to renewing talks on India Comprehensive Economic Cooperation Agreement (CECA), are on as, reportedly, confirmed by Australia’s High Commissioner to India Barry O’ Farrell.
The High Commissioner said that despite the second wave of COVID-19, the global enthusiasm towards India hadn’t subsided.
Ever since the trade talks were suspended between both the countries in 2015, Indian apparel exporters have been urging the Government to conclude trade deal with Australia as it would help boost Indian shipment to the country significantly.
There’s a presumption that once the trade deal with Australia is concluded, India could immediately generate additional exports of US $ 500 million.
Reportedly, Australia currently has preferential agreements with China and Vietnam, in addition to giving GSP benefits to Bangladesh, resulting in a 5 per cent duty advantage for these countries vis-à-vis India.
In the monetary 12 months 2021, India’s exports to Australia had been priced US $ 4.04 billion, whereas imports had been US $ 8.24 billion.
Yes, the balance of payment currently favours Australia; however, if some part of apparels is absorbed into the trade agreement, it could offset the imbalance.
Talking of apparels, Australia imports around US $ 6.6 billion worth apparels – India’s share being 1.2 per cent (US $ 206 million). The resumption of talks is surely going to impact the numbers.
Last month, EU and India had agreed to restart the free trade agreement to strengthen the economic cooperation especially amidst the fast growing influence of China.
On India’s production-linked incentive scheme geared towards strengthening manufacturing within the nation, Australia’s commerce and funding commissioner Tim White mentioned that infrastructure and vitality had been the 2 sectors Australia might add to India’s skills.
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