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India Australia Trade

India's exports to Australia reached US$ 7.28 billion in FY26, led by petroleum products, engineering goods, pharmaceuticals, textiles and apparel, and gems and jewellery.

Last updated: Oct, 2026

Introduction

India and Australia are Indo-Pacific partners with a shared vision for a resilient, inclusive, open region. In FY26, Australia ranks 13th in exports, and in imports ranks 16th. Major exports to Australia include petroleum products, engineering goods, Drugs and Pharmaceuticals, textiles and apparel, and gems and jewelry.

India-Australia Trade

  • India's goods exports were worth US$ 7.28 billion, and imports aggregated to US$ 13.81 billion in FY26.
  • Australia occupies the 26th position in FDI equity inflows into India with a cumulative FDI amount of Rs. 11,739.07 (US$ 1.74 billion) from April 2000-March 2026.

Major exports from India to Australia

  • India’s export to Australia reached US$ 7.28 billion in FY26.
  • India exported 5,668 commodities to Australia in FY26.
  • India’s major exports to Australia include petroleum products (US$ 2.71 billion), engineering goods (US$ 1.57 billion), pharmaceutical products (US$ 528.95 million), gems and jewellery (US$ 370.35 million), RMG of all textiles (US$ 343.39 million), electronic goods 218.50, organic and inorganic chemicals 212.69, during FY26.

Major imports by India from Australia

  • Imports from Australia to India were valued at US$ 13.81 billion during FY26.
  • India imported 2,184 commodities from Australia in FY26.
  • India’s major imports from Australia include coal, coke and briquettes (US$ 6.22 billion), gold (US$ 2.80 billion), metaliferrous ores and other minerals (US$ 1.27 billion), pulses (US$ 756.78 million), during FY26.

Recent Trends and Developments

  • On July 9, 2026, Australia approved the establishment of new campuses of Flinders University in Bengaluru and Victoria University in Gurugram. The initiative is expected to strengthen higher education collaboration and support the development of a future-ready workforce.
  • On July 9, 2026, India and Australia signed multiple agreements to strengthen collaboration in cyber security, critical technologies, supply chains, scientific research, and innovation. The partnership also includes cooperation in geoscience, traditional knowledge, and pharmaceutical research.
  • The India–Australia Economic Cooperation and Trade Agreement (ECTA) completed four years, strengthening bilateral trade, which reached Rs. 2.04 lakh crore (US$ 24.1 billion) in FY2024-25. Since the agreement was signed in 2022, India's exports to Australia have more than doubled to Rs. 71,876 crore (US$ 8.5 billion), while all Indian exports have enjoyed zero-duty market access in Australia since January 1, 2026.
  • As part of the 3rd Australia–India Education and Skills Council (AIESC) Meeting held in New Delhi, India, Australia held a bilateral dialogue to strengthen cooperation in skills development, workforce mobility, and the emerging sports economy. The discussions focused on accelerating the Mutual Recognition of Qualifications mechanism, co-designing bridge courses to enable seamless mobility of skilled professionals and preparing workers for global standards in sectors such as advanced construction, infrastructure, sports management, and sports technology.
  • India, Australia and Canada agreed to establish a new trilateral framework, the Australia–Canada–India Technology and Innovation (ACITI) Partnership, aimed at strengthening cooperation in critical and emerging technologies. The partnership will complement existing bilateral initiatives and leverage the respective strengths of the three countries, with a focus on green energy innovation, resilient and diversified supply chains, including critical minerals, and advancing collective ambitions towards net-zero goals.
  • On October 16, 2025, India and Australia convened their fifth Energy Dialogue in New Delhi, which was jointly chaired by Mr. Manohar Lal, Union Minister of Power and Housing & Urban Affairs, and Mr. Chris Bowen, Minister for Climate Change and Energy. The purpose of the Energy Dialogue was to assess the progress made in cooperation through several Joint Working Groups and for both parties to provide an update on the key initiatives undertaken by their respective Ministries of Energy in relation to Energy Transition to Net Zero Emissions, Energy Efficiency and Enabling Technologies, The Role of Green Hydrogen, and Developing Reliable, Diversified and Resilient Energy Supply Chains.
  • Indian Minister for Defence Mr. Rajnath Singh will undertake a two-day official visit to Australia on October 9–10, 2025, at the invitation of Australian Deputy Prime Minister and Defence Minister Mr. Richard Marles, coinciding with the fifth anniversary of the India–Australia Comprehensive Strategic Partnership. The visit, the first by an Indian Defence Minister to Australia since 2014, will feature bilateral discussions aimed at deepening defence cooperation, interactions with Australian leadership, and a business roundtable with industry leaders in Sydney.
  • The latest negotiations for the India–Australia Comprehensive Economic Cooperation Agreement (Ind-Aus CECA) took place in New Delhi from August 18-23, 2025, as part of India and Australia’s ongoing efforts to strengthen the economic and trade relationship between the two countries. This negotiation round focused on several key areas, including Trade in Goods, Trade in Services and Work Mobility; Digital Trade; Rules of Origin, and all Legal and Institutional Provisions; Environmental, Labour and Gender Issues.
  • The India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) marked its third anniversary today, underscoring its role in strengthening bilateral economic ties since its signing on April 2, 2022. The agreement has expanded trade and business opportunities, with total bilateral trade reaching US$ 24 billion in 2023–24 and India’s exports to Australia recording a 14% growth over 2022–23, followed by a further 4.4% increase during April 2024–February 2025.
  • The three-day stocktake visit for the India–Australia Comprehensive Economic Cooperation Agreement (CECA) concluded in New Delhi on December 6, 2024, marking an important step in advancing the bilateral trade and strategic partnership. Led by Chief Negotiators Mr. Rajesh Agrawal for India and Mr. Ravi Kewalram for Australia, the discussions reviewed progress across key areas including trade in goods and services, mobility, agri-tech cooperation, and market access, with due consideration to India’s food security priorities.
  • India and Australia have finalised an air-to-air refuelling arrangement to enable their air forces to support each other’s military aircraft, a move expected to significantly enhance operational reach and interoperability in the Indo-Pacific region. Announced on November 21, 2024, the arrangement reflects the growing depth of bilateral defence cooperation and will facilitate more complex joint operations, exercises and deployments.
  • India’s Union External Affairs Minister Mr. S. Jaishankar, has highlighted the expansion and diversification in the relationship between India and Australia over the past five years. On June 4, 2025, which marked the fifth anniversary of the India-Australia CSP, Mr. S. Jaishankar acknowledged the growing depth of collaboration across various sectors between the two economies.
  • India and Australia to work closely for collaborative projects, timely resolve market access issues, deepen people-to-people contacts, create an institutional mechanism for sharing of preferential import data, and work on innovative areas for result-oriented successful completion of ongoing CECA negotiations.

Economic Relations

  • On July 9, 2026, India and Australia operationalised the India–Australia Civil Nuclear Agreement, enabling the supply of uranium from Australia to India. The two countries also reaffirmed their commitment to strengthening energy security through closer cooperation.
  • On July 9, 2026, Prime Minister Mr. Narendra Modi met Australian Prime Minister Mr. Anthony Albanese at the 3rd India–Australia Annual Summit in Melbourne to advance cooperation in trade, investment, defence, clean energy, and emerging technologies.
  • Commerce and Industry Minister Mr. Piyush Goyal announced that 100% of Australian tariff lines for Indian exports will become zero-duty from January 1 next year, unlocking fresh opportunities for labour-intensive sectors. Marking the third anniversary of the India–Australia Economic Cooperation and Trade Agreement. India’s exports to Australia grew by 8% in 2024–25, improving the trade balance, with strong gains across manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewellery, which saw a 16% rise between April and November.
  • On October 9, 2025, an inaugural meeting between Australian Deputy Prime Minister (and Defence Minister) Mr. Richard Marles and Indian Minister for Defence Mr. Rajnath Singh took place in Australia. This meeting sets a new milestone for the advancement of defence relations between Australia and India following their agreement to continue with a Comprehensive Strategic Partnership (CSP) in 2020. As part of this meeting, it was agreed that there will be a defence ministers' dialogue held annually, and that Australia and India will continue to expand the level of cooperation between the two nations concerning land forces, air forces, navy, cyberspace, and new and emerging areas.
  • India and Australia signed a Mutual Recognition Arrangement (MRA) for organic products on September 24, 2025, at Vanijya Bhavan, New Delhi, reinforcing the India–Australia Economic Cooperation and Trade Arrangement (ECTA) and deepening bilateral economic ties. Implemented by APEDA, India, and the Department of Agriculture, Fisheries and Forestry (DAFF), Australia, the MRA provides mutual recognition of organic standards and certification systems, covering unprocessed plant products, processed foods of plant origin, and wine. With India’s organic exports to Australia reaching US$ 8.96 million in FY 2024–25, the MRA marks a key milestone in boosting organic trade and advancing India’s vision of becoming a global organic food hub.
  • Australia unveiled a new roadmap aimed at strengthening and broadening its trade and investment relationship with India. As an initial step, Canberra committed US$ 16 million to establish the Australia–India Trade and Investment Accelerator Fund. The strategy centres around four key sectors identified as "superhighways of growth” clean energy, education and skills, agribusiness, and tourism. The roadmap sets out a structured approach to advance existing initiatives, stimulate two-way investment, and foster collaboration with Indian Australian communities and businesses.
  • The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) marks two years of significant success, enhancing trade ties and fostering mutual growth. This partnership has created new opportunities for MSMEs and businesses, contributing to employment in both nations. As it enters its third year, the Indian government remains committed to sustaining this momentum through innovative initiatives aimed at achieving the vision of a developed India by 2047. Since its inception, bilateral merchandise trade has surged from US$ 12.2 billion in 2020-21 to US$ 26 billion in 2022-23, with continued strong performance in the current fiscal year, reaching US$ 16.3 billion by November 2024.
  • The India-Australia economic relationship has grown significantly in recent years. India’s growing economic profile and commercial relevance to the Australian economy is recognized, both at the federal and state level in Australia. India is the 6th largest export partner and the 11th largest import partner as of 2020. While India has a surplus in trade in services with Australia, it has a deficit in merchandise trade, largely due to coal imports. Australian investments in India are currently pegged at US$ 15 billion, while India’s investment footprint in Australia is US$ 12 billion. The ECTA agreement with Australia has demonstrated India’s earnest desire, and industry’s confidence, to enter into trade deals where both countries gain, and give a solid basis for more trade pacts.
  • The India-Australia Economic Cooperation and Trade Agreement (#IndAusECTA) has come into effect. The Ind-Aus ECTA provides an institutional mechanism to encourage and improve trade between the two countries. It covers almost all the tariff lines dealt with by India and Australia. India will benefit from preferential market access provided by Australia on 100% of its tariff lines, including all the labor-intensive sectors of export interest to India, such as gems and jewellery, textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical devices and automobiles. On the other hand, India will be offering preferential access to Australia on over 70% of its tariff lines, including lines of export interest to Australia, which are primarily raw materials and intermediaries such as coal, mineral ores, and wines.
  • The Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with the Australian Government, hosted a comprehensive and productive roundtable to discuss the learnings from the Australia-India Critical Agriculture Skills Pilot Project.
  • AIM–NITI Aayog has introduced a novel accelerator to bolster circular economy startups in Australia and India. This program aims to assist startups and SMEs in both nations, focusing on circular economy technologies, fostering collaboration and exploring new opportunities.
  • Mr. Dharmendra Pradhan co-chaired the inaugural AIESC meeting in Gandhinagar, reinforcing knowledge ties for robust India-Australia relations. Five MOUs were exchanged during this meeting to enhance academic and research collaborations. India allocated US$ 2.5 million for joint venture projects in critical minerals and priority sectors with Australia.

Conclusion

The India–Australia relationship has evolved into a comprehensive and future-oriented partnership, underpinned by strong strategic trust and expanding economic engagement. Recent milestones, including progress on CECA, the third anniversary of the Ind-Aus ECTA, zero-duty access for Indian exports, and the organic products MRA, reflect deepening trade and supply-chain integration. Defence cooperation has advanced significantly through institutionalised dialogues and operational arrangements, enhancing interoperability in the Indo-Pacific. Collaboration in clean energy, green hydrogen, critical minerals and energy transition highlights shared net-zero ambitions. At the same time, initiatives in skills mobility, sports economy, and education are strengthening people-to-people ties. Trilateral and multilateral frameworks in technology and innovation further reinforce strategic convergence. As the Comprehensive Strategic Partnership completes five years, India–Australia ties are poised for sustained growth and greater regional and global impact.

Contacts

Directorate General of Foreign Trade | Ministry of Commerce and Industry | Government of India (dgft.gov.in)

FAQs

India exports to Australia are led by petroleum products (US$ 2.71 billion), followed by engineering goods, pharmaceutical products, gems and jewellery, textiles, electronic goods, and chemicals. These high-value sectors continue to strengthen India Australia trade under the ECTA framework.

The India Australia Economic Cooperation and Trade Agreement (India Australia ECTA) has significantly expanded bilateral trade between India and Australia by improving market access and reducing tariffs. Since its implementation, India exports to Australia have more than doubled, while Indian products have benefited from 100% zero-duty market access since January 2026.

The growth of India Australia trade is being driven by energy, engineering, pharmaceuticals, critical minerals, clean energy, education, advanced manufacturing, digital technologies, and defence. Collaboration in cyber security, scientific research, and innovation is further deepening the economic partnership.

The Australian market offers strong export opportunities from India to Australia across labour-intensive sectors, engineering products, medical devices, organic food, chemicals, and value-added manufacturing. Zero-duty access under the India Australia ECTA and ongoing CECA negotiations are expected to further improve market access.

Recent growth in India exports to Australia has been driven by petroleum products, chemicals, textiles, plastics, pharmaceuticals, and gems and jewellery. The gems and jewellery segment alone recorded 16% growth between April and November 2025, reflecting the positive impact of the trade agreement.

Reduced import duties under the India Australia ECTA have enhanced the competitiveness of Indian exports by lowering trade barriers and improving price competitiveness. Preferential tariff access has particularly benefited labour-intensive industries, MSMEs, and sectors such as food products, textiles, engineering goods, furniture, medical devices, and automobiles.

Growing Australia imports from India are supported by demand from the country's energy, healthcare, infrastructure, manufacturing, retail, and construction sectors. Australia's focus on clean energy, advanced manufacturing, and healthcare is also creating new demand for Indian engineering products, pharmaceuticals, and industrial inputs.

The growth of India Australia trade is being driven by the India Australia trade agreement (ECTA), stronger supply-chain cooperation, expanding investment, clean energy partnerships, critical minerals collaboration, and progress towards the Comprehensive Economic Cooperation Agreement (CECA).

Emerging export opportunities from India to Australia include organic food products, clean energy technologies, critical mineral processing solutions, medical devices, advanced engineering products, circular economy solutions, digital technologies, and agritech. These sectors are gaining momentum through bilateral innovation and sustainability partnerships.

Small businesses can expand India exports to Australia by leveraging zero-duty access under the India Australia ECTA, meeting Australian quality standards, and targeting sectors such as organic products, engineering goods, processed food, textiles, and medical devices. MSMEs can also benefit from innovation partnerships and growing business collaboration between the two countries.

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