Big news for Indian exporters and businesses! From January 1, 2026, Australia will remove tariffs on 100% of Indian exports. This means every product made in India will enter Australia duty-free under the India-Australia Economic Cooperation and Trade Agreement (ECTA). Commerce Minister Piyush Goyal announced this on the third anniversary of the deal.
This major change will make Indian goods cheaper and more competitive in Australia, opening huge opportunities for MSMEs, farmers, and labour-intensive sectors.
Know Complete Details of Australia Tariff Removal 2026
The India-Australia ECTA came into force on December 29, 2022.
Key points:
- Australia has progressively reduced tariffs since 2022.
- From January 1, 2026: 100% Australian tariff lines become zero-duty for Indian goods.
- No exceptions – all products from textiles to agriculture get full duty-free access.
India’s exports to Australia already grew 8% in 2024-25, with strong gains in manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems & jewellery.
Agri-exports saw big jumps in fruits & vegetables, marine products, spices, and coffee.
How Much Benefit Will Indian Exporters Get in 2026?
This zero-tariff rule brings direct savings:
- Lower costs: No customs duty means better pricing and higher margins.
- More competitiveness: Indian products cheaper than rivals from other countries.
- Higher exports: Expected surge in volumes, especially for labour-intensive items.
- Trade balance improvement: India’s deficit with Australia already reduced over 40% since ECTA started.
Bilateral goods trade reached $24.1 billion in 2024-25.
Which Sectors Will Get Big Boost from January 2026?
Major beneficiaries:
- Textiles and garments: Easier market entry for clothing and home furnishings.
- Gems & jewellery: Cut and polished diamonds, gold items become more affordable.
- Agriculture: Fruits, vegetables, marine products, spices, coffee.
- Manufacturing: Engineering goods, chemicals, plastics, pharmaceuticals.
- MSMEs and farmers: Direct support for small businesses and rural economy.
A recent Mutual Recognition Arrangement on organic products also reduces compliance costs for organic exporters.
How It Affects You – New Rules for Trade from January 1
- Exporters: Start preparing shipments – use ECTA certificate of origin for zero-duty claims.
- Businesses: Explore Australian market for new orders and partnerships.
- Job creation: Boost in labour-intensive sectors means more employment.
- Economy: Aligns with Make in India and Viksit Bharat 2047 vision.
Negotiations for a broader Comprehensive Economic Cooperation Agreement (CECA) are ongoing for even deeper ties.
This is a golden chance for Indian businesses to expand globally from 2026.
Are you an exporter planning to tap Australia? What products will benefit most? Comment below and share your views!
Stay updated with us for all latest trade, export rules, and government schemes in 2026.
Sources: Ministry of Commerce and Industry, RBI Reports, Official ECTA Documents, Economic Surveys 2025-26.