The India-Australia Economic Cooperation and Trade Agreement passed by the Australian parliament will provide diverse opportunities for businesses from both nations, India Inc said on Tuesday.
"The agreement, once implemented, will provide duty-free access to the Australian market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery," industry body CII said.
With the trade agreement, cheaper raw material imports and intermediate goods will help India become more competitive in other markets. It will also help Indian consumers get goods and services at competitive prices and industries open job opportunities for Indian students studying there, it added.
According to CII, the IT sector will be the biggest beneficiary of the pact.
"The FTA will also provide a big boost to the pharmaceutical industry in India. Medicines, which have gone through the rigorous approval process by USA & UK, will now have fast-tracked mechanism to get approval in the Australian Regulatory system," it added.
FICCI Director General Arun Chawla said this agreement will open doors to opportunities across diverse areas like mining and minerals, pharmaceuticals, healthcare, education, clean energy, transportation, gems and jewellery, tourism and textiles, generating about a million jobs in India.
There are also excellent prospects for collaboration between India and Australia in some critical areas like space and defence, critical minerals and related technologies, water resources, training and education, circular economy, and cyber technologies, he added.
Assocham Secretary General Deepak Sood said the FTA would lead to enhanced trade and investment between the two major economies of the world, scaling opportunities for increased employment in several job-oriented sectors, such as textiles, leather, gems and jewellery, sports goods and engineering.
India and Australia would now implement the free trade agreement on a mutually agreed date as the Australian Parliament on Tuesday approved the pact between the two countries.