India, Australia may ink full trade deal after 2024 LS Polls

India may sign the comprehensive trade deal with Australia only after the conclusion of the general elections next year as Canberra has sought access to India’s agriculture market, a senior government official said Friday. “The government is reluctant to commit anything involving the agriculture sector. General elections are also around the corner,” said an official, adding that several countries are seeking commitments in the agri sector such as the UK and the EU.

India’s exports to Australia rose 14% in April-November FY23 while imports fell 19% on-year, the government said Friday.

The India-Australia Economic Cooperation and Trade Agreement (ECTA) came into effect on December 29, 2022. The two sides signed an interim trade deal last year in December when India eliminated duties on avocados, certain peas and beans, onions, leeks, asparagus and cherries, among others. However, Australia is seeking more access to the Indian agricultural market and is pushing for a deeper access in the wine segment.

India’s trade deficit with Australia shrank 39% in the first eight months of the fiscal year at $5.27 billion from $8 billion in April-November 2022.

“Our exports have been growing in the preferential lines and that growth is better than the average, which means we are gaining market share in those areas,” said an official.