Recent efforts are underway to re-launch the long-suspended Free Trade Agreement between the European Union and India.
India and Australia are now in talks to resume trade talks, which could be a major boost to India’s garment exports.
Barry O’Farrell, Australia’s High Commissioner to India, confirmed the official talks between the two countries, especially the Comprehensive Economic Cooperation Agreement (CECA).
The High Commissioner said that despite the second wave of COVID-19, global enthusiasm for India has not diminished.
In 2015, trade talks between the two countries were suspended. Since then, Indian garment exporters have been urging the government to conclude a trade deal with Australia as it would help significantly increase India’s shipments to the country.
At the same time, once the trade agreement with Australia is finalized, India can immediately export the additional US $ 500 million.
According to the report, Australia currently has preferential agreements with China and Vietnam to provide GSP benefits to Bangladesh, which will result in a 5 percent tariff facility in India for these countries.
In the monetary 12 months of 2021, India’s exports to Australia had been priced at the US $ 4.04 billion, whereas imports had been US $ 8.24 billion.
However, the balance of money is currently in Australia’s favor; but, if some part of the garment is included in the trade agreement, it can bring imbalance.
In terms of clothing, Australia imports approximately US $6.6 billion worth of clothing, with India accounting for 1.2 percent (US $ 206 million).
But the resumption of negotiations will certainly have an impact on the numbers.
Last month, the EU and India agreed to re-launch a free trade agreement to strengthen economic cooperation, especially in the face of China’s rapidly growing influence.
Australian Trade and Funding Commissioner Tim White emphasized the need to boost production within the nation, as well as India’s manufacturing-linked incentive projects.
It has been said that both infrastructure and vitality could be linked to Australia’s skills in India