The resources sector will be one of the main beneficiaries after the Australia-India Economic Cooperation and Trade Agreement was officially signed, making exports to India cheaper and creating huge new opportunities for workers and businesses.
Tariffs will be eliminated on more than 85 per cent of Australian goods exports to India (valued at more than $12.6 billion a year), rising to almost 91 per cent ($13.4 billion) over 10 years.
The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium.
Minerals Council of Australia chief executive officer Tania Constable said the agreement recognised the mutual benefits of supply chain security and co-operation delivering prosperity and a common effort on global challenges.
“India has represented an enormous potential opportunity for Australian mining and METS companies, and exporters more generally,” she said.
“Australian mining has a reputation as a reliable and responsible partner in supporting global economic development, secure supply chains and decarbonisation.
“A deeper resources trade and investment relationship with India will broaden our economic, technology and trade coordination adding to the deep people-to-people links between the two nations.
“The mining industry looks forward to further co-operation and economic integration as the two nations finalise the comprehensive agreement and pave the way for expanded trade and investment flows to the benefit of both economies and the region.”
Prime Minister Scott Morrison said the agreement would create enormous trade diversification opportunities for Australian producers and service providers bound for India, valued at up to $14.8 billion each year.
“This agreement opens a big door into the world’s fastest growing major economy for Australian farmers, manufacturers, producers and so many more,” he said.
“By unlocking the huge market of around 1.4 billion consumers in India, we are strengthening the economy and growing jobs right here at home.”