India’s free trade agreement with Australia is expected to come into force from January 2023.

The agreement will provide Indian exporters duty-free access to the Australian market in sectors including textiles, leather, furniture, jewellery and machinery. Labor-intensive sectors which would gain immensely include textiles and apparel, a few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, and electrical goods.

Under the pact, Australia is offering zero-duty access to India for about 96 per cent of exports (by value) from day one. This covers many products that currently attract four per cent to five per cent customs duty in Australia.India has got visas for Indian chefs and yoga instructors and also got a commitment that every child going to study in Australia will get an opportunity to work there depending on the level of education.

The pact will help farmers growing grapes for making wine to explore more business opportunities in Australia. The wine industry has welcomed it wholeheartedly since it will help attract investments. There are 6000 farmers in India who grow grapes for wine purposes. Australia has also approved an amendment to the Double Taxation Avoidance Agreement, a move which would help the Indian IT sector operating in that market.It would stop the taxation on the offshore income of Indian firms providing technical support in Australia.