India-Australia trade deal set to enter into force from Dec 29

New Delhi: A trade deal between India and Australia is set to enter into force from December 29 after the Union government completed domestic requirements to enable its implementation, leading to benefits for the country's IT industry, students, and labour-intensive sectors.

The Australian government on Wednesday welcomed Indian side's confirmation that all requirements had been completed for the implementation of the Economic Cooperation and Trade Agreement (ECTA), which was signed on April 2.

This was India's first trade deal in a decade with any developed country. Australia finalised its domestic requirements for the trade agreement last week with the unanimous passage of government bills through both houses of Parliament.

An Australian government statement said the implementation of the deal will lead to two tariff cuts by January 1. "From 29 December, tariffs on 85 per cent of Australia's exports to India will be eliminated and high tariffs on a further 5 per cent of goods will be phased down.