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India Australia Trade

India exported 5,124 commodities to Australia in FY24.

Last updated: Apr, 2026

Introduction

India and Australia are Indo-Pacific partners with a shared vision for a resilient, inclusive, open region. In FY26 (till November 2025), Australia ranks 13th in exports, and in imports ranks 15th. Major exports to Australia include petroleum products, engineering goods, Drugs and Pharmaceuticals, textiles and apparel, and gems and jewelry.

India-Australia Trade

  • The bilateral trade between India and Australia in FY26 (till November 2025) stood at US$ 13.93 billion.
  • India's goods exports were worth US$ 4.85 billion, and imports aggregated to US$ 9.08 billion in FY26 (till November 2025).
  • Australia occupies the 26th position in FDI equity inflows into India with a cumulative FDI amount of US$ 1.67 billion from April 2000-September 2025.

Major exports from India to Australia

  • India’s export to Australia reached US$ 4.85 billion in FY26 (till November 2025).
  • India exported 5,233 commodities to Australia in FY26 (till November 2025).
  • India’s major exports to Australia include petroleum products (US$ 1.79 billion), machinery and mechanical appliances (US$ 375.24 million), pharmaceutical products (US$ 322.50 million), natural and precious pearls and stones (US$ 263.95 million), electrical machinery and equipment (US$ 244.85 million), vehicles and auto components (US$ 176.91 million), and apparel and clothing accessories (US$ 136.69 million), during FY26 (till November 2025).

Major imports by India from Australia

  • Imports from Australia to India were valued at US$ 9.08 billion during FY26 (till November 2025).
  • India imported 1,866 commodities from Australia in FY26 (till November 2025).
  • India’s major imports from Australia include mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes (US$ 4.32 billion), natural and precious pearls and stones (US$ 1.98 billion), ores, slag and ash (US$ 777.23 million), fertilisers (US$ 294.07 million), cotton (US$ 248.78 million), inorganic chemicals (US$ 188.80 million), and aluminium and articles (US$ 160.31 million), during FY26 (till November 2025).

Recent Trends and Developments

  • 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

  • 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.
  • INS Sahyadri, an indigenously built warship of the Indian Navy, engaged in the inaugural trilateral Maritime Partnership Exercise with Royal Australian Navy and Indonesian Navy, fostering collaboration for regional stability in the Indo-Pacific.

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)

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