Various Indian products, including textiles and apparel, will have preferential market access to the Australian market with zero customs duty.

So far 70 per cent of India’s textile products and 90 per cent of apparel products faced duty on export to Australia. Tirupur accounts for about 60 per cent of India’s garment exports to Australia. And Australia’s zero import duty access to India (earlier five per cent) would likely level the playing field for the Indian textile industry with other countries like Bangladesh, China, and Vietnam.

In fiscal year 2022 and during the first seven months of fiscal year 2023, Australia accounted for about two per cent of India’s apparel exports, compared to about one per cent in fiscal year 2015. Going forward, the share is expected to increase further on account of the added advantages of the free trade agreement.

The Australian market presents good potential for Indian exports of home textiles like bed and bath linen, toilet and kitchen linen, curtains, pillow covers, quilts and comforters, cotton bags, and readymade garments as well as carpets and flooring.