'Going to have another crack...': Australia seeks to restart talks on broader trade deal with India

India and Australia are set to restart negotiations on a broader trade agreement in the coming weeks, as Canberra pushes to expand economic ties with one of the world’s fastest-growing major economies. 

Australia’s Trade Minister Don Farrell said discussions with India will resume shortly, signalling renewed momentum in negotiations beyond the existing trade pact signed in 2022. 

“We’re going to have another crack in India in the next few weeks,” Farrell said on March 30 while addressing the National Press Club, highlighting gains already delivered by the current agreement. 

According to Farrell, bilateral trade between Australia and India has grown by about 17% since the deal came into force, benefiting exporters and businesses on both sides. 

Building on the 2022 interim trade deal 

The two countries implemented the India-Australia Economic Cooperation and Trade Agreement (ECTA) in December 2022, marking the first free trade agreement between the two nations. 

Under ECTA, India eliminated tariffs on more than 85% of Australian goods, with the coverage expected to rise to around 90% over time. Key Australian exports benefiting from the agreement include: 

• Coal 
• Wool 
• Cotton 
• Seafood 
• Certain agricultural products 

Australia, in return, removed tariffs on about 96% of Indian exports, including: 

• Textiles and apparel 
• Jewellery 
• Leather products 
• Machinery and engineering goods 
• Certain pharmaceuticals and chemicals 

The deal also opened pathways for greater services trade and mobility of professionals, helping Indian IT, engineering and hospitality workers access Australian markets more easily. 

Towards a comprehensive pact 

Both countries are now negotiating a broader agreement known as the Comprehensive Economic Cooperation Agreement (CECA), which aims to expand the scope of ECTA. 

The proposed CECA would likely include: 

• Deeper tariff reductions across more product categories 
• Stronger market access for services 
• Investment protections 
• Cooperation in critical minerals and supply chains 
• Rules for digital trade and emerging technologies 

However, Farrell indicated that negotiations are unlikely to deliver a sweeping, single-stage outcome. 

“With India, it’ll be step by step. We’re not going to get a big bang agreement,” he said. “We’ll make progress. That’ll work for a while, then we go back and do some more.” 

Tough negotiations expected 

Farrell also acknowledged that talks could be complex, noting the negotiating style of India’s commerce minister Piyush Goyal. 

“India also has great ambitions to reach a deal,” Farrell said, adding, “Piyush Goyal is a very hard man, so I wouldn’t anticipate an easy set of negotiations.” 

India has traditionally taken a cautious approach to trade agreements, seeking to protect domestic industries while securing market access for its services sector and skilled workforce. 

Strategic economic partnership growing 

Economic ties between the two Indo-Pacific partners have expanded significantly in recent years. Australia is a major supplier of critical minerals, energy resources and agricultural products, while India exports manufactured goods, pharmaceuticals and services. 

Both governments also view the partnership through a strategic lens as they deepen cooperation in the Indo-Pacific under frameworks such as the Quadrilateral Security Dialogue, which also includes the United States and Japan. 

Rising middle class driving opportunities 

Farrell said Australia sees strong long-term demand growth in India’s consumer market, particularly as incomes rise. “India represents great opportunities,” he said, noting projections that around 900 million Indians could enter the middle class by 2030. 

“What do we know about people when their incomes rise? Well, they want better food and better wine. So here’s a wonderful opportunity.” 

For Australia, sectors such as wine, agriculture, education, and resources are expected to benefit from deeper trade integration, while India hopes expanded access will support exports, services trade, and investment flows between the two economies.