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Australia is one of only three countries with which India holds annual leader-level summits. The Prime Ministers of Australia and India regularly interact at international fora, including through the Quad, G20, and East Asia Summit.

• Australian and Indian Foreign and Defense Ministers meet every second year in a ‘2+2' format.
• India remains Australia's largest source of skilled migrants and second-largest source of international students.
• In 2023, India was Australia's fourth-largest export market and fifth-largest trading partner with two-way trade totaling USD 49 Billion.

India's imports from Australia totaled USD 16.16 Billion, while exports to Australia reached USD 7.94 Billion in 2023-24.

Australia ranks 26th in foreign direct investment (FDI) in India, with cumulative FDI reaching USD 1.38 Billion from April 2000 to September 2023.

FDI equity inflow from Australia to India amounts to USD 1.5 Billion between April 2000 and June 2024.

The Economic Cooperation and Trade Agreement (ECTA) was enforced on 29th December 2022. Key provisions include:

• Elimination of Tariffs: Immediate removal of tariffs on over 96% of Indian exports to Australia, including textiles, leather, gems, and jewelry.
• Phased Tariff Reductions: Gradual reductions on Australian exports to India, including premium wine, wool, coal, and critical minerals.
• Transparency: Both countries committed to publishing laws, regulations, and rulings regarding the Trade in Goods chapter.

ECTA supports growth in services, mobility, professional services, tourism & education, and reduces non-tariff trade barriers.

Over 85% of Australian goods exports to India are now tariff-free, rising to 90% by January 2026. Similarly, 96% of imports from India are tariff-free, rising to 100% by January 2026.

In the first 12 months since ECTA's implementation:

• Exports to India (excluding coal) increased 35% in 2023 vs 2022.
• Agriculture exports surged 60%.
• Industrial exports (excluding coal) grew 30%.
• Total imports under ECTA increased modestly, with agriculture goods up 15% and non-diesel industrial products up 2%.

Several Australian players such as Macquarie Group, ANZ Bank, BHP Billiton, Wesfarmers, and Telstra have long had a presence in India. With the ease of doing business improving, many Australian organizations are now eyeing GIFT City as a hub to set up or expand their global operations.

India-Australia relations are entering a new era of growth and cooperation, driven by trade agreements, strategic partnerships, and investment flows. As both economies integrate further, opportunities across industries are set to expand, reinforcing their role as key players in the Indo-Pacific economic landscape.