TN exports to Australia to cross $500 mn this year

CHENNAI: Exports from TN to Australia are expected to breach $500 million this year, giving a boost to the economic cooperation and trade agreement (ECTA) outcomes between the two countries, said a top official.

M Balaji, joint secretary, union government, in his keynote address and presentation at an outreach seminar on Indo-Australia ECTA held in the city on Tuesday, said in FY 21-22, exports from TN to Australia were to the tune of $384 million and during the current financial year from April to October exports from TN were $322 million and it is expected during this year exports from TN to Australia may cross $500 million.

He said the recently signed India Australia ECTA would provide immediate market access at zero duty accounting for 98.3% of tariff lines and 96.4% of India’s exports in value terms to Australia.

India-Australia ECTA will gain immensely from textiles and garments sector, especially on the made-ups, apparel and garments also opening a window for the handloom sector. Rajalakshmi Devaraj, zonal additional DGFT, Chennai, in her address, said “The competitiveness of Indian exports will increase due to immediate zero duty access and will result in higher market share”.

The ECTA has the potential to double bilateral trade between India and Australia to $50 billion in the next five years.

Sarah Kirlew, consul general, Australian Consulate General, said “The agreement which came into force on 29-12-2022 will support strategic interests and economic growth of both the countries”.