All Indian Exports to Australia to Become Tariff-Free from January 2026

In a major boost for bilateral trade, Australia will eliminate tariffs on all Indian exports starting January 1, 2026, marking a significant milestone under the India–Australia Economic Cooperation and Trade Agreement (ECTA). 

Commerce and Industry Minister Piyush Goyal announced that 100% of Australian tariff lines will move to zero duty for Indian exports from the beginning of next year, creating broader market access for Indian goods across sectors. 

This move comes as the two countries mark the third anniversary of the India-Australia trade pact, which has already begun transforming trade flows by progressively reducing duties. 

Impact on Trade and Industry

According to government statements, Indian exports to Australia grew by around 8% in the 2024-25 financial year, driven by strong performances in manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems & jewellery. 

The tariff removal is expected to benefit labour-intensive sectors and MSMEs, making Indian products more competitive in the Australian market by eliminating costs associated with customs duties. 

This zero-duty status is also anticipated to strengthen supply-chain linkages and foster deeper economic cooperation between the two nations. Experts say the decision underscores Australia’s recognition of India as an increasingly strategic economic partner in the Indo-Pacific region. 

Wider Trade Relations

The tariff elimination highlights the success of the interim ECTA, which has paved the way for discussions on a more comprehensive trade agreement. Negotiations on a Comprehensive Economic Cooperation Agreement (CECA) are ongoing and expected to further deepen economic ties.

As India continues to expand trade agreements and improve market access globally, the Australia tariff decision is seen as a significant step toward strengthening export potential and enhancing bilateral economic cooperation.