He also said negotiations to widen the existing trade agreement into a comprehensive deal are “progressing well”.
“We expect to have some negotiations on rules of origin during January. That is one area where we have to work out detailed product-specific rules, and it takes time,” Agrawal noted.
Foreign direct investments have risen too from Australia to India at an annual average of USD 30-40 million to USD 300 million this year, he added.
India’s imports from Australia, however, dipped by 19 per cent to USD 11.14 billion during April-November this fiscal.
According to the data provided by the department, bilateral trade during the period fell 10 per cent to USD 17 billion. Export sectors, which have recorded healthy growth during the seven-month period of this fiscal, include engineering, pharma, electronics, spices, coffee, textiles, marine products, cashew and plastic. “We are gaining market share in Australia. Preferential duties are working in favour of industry. We are diversifying our trade basket with Australia,” Agrawal said.
However, exports of gems and jewellery, and handicrafts have reported a negative growth.
On the import side, inbound shipments of gold jumped to USD 1.56 billion during April-October 2023 from USD 436 million in the same period last year.
Other import sectors recording healthy growth include pulses, metals, iron and steel, wood and wood products, machine tools and newsprint.
Presenting the data, Additional DGFT Tapan Mazumder said that export sectors where customs duty concessions have been given under the agreement also reported positive growth.
Those goods included gold jewellery studded with natural diamonds, non-galvanised pipe for oil and gas, unstudded gold jewellery, skirts and dresses made of material other than silk, dresses of artificial fibres and cotton garments.
When asked which country is gaining more from the agreement, Agrawal said, “We have just completed a year, it is very early to say that”.
Commenting on the agreement, trade expert and Hi-Tech Gears Chairman Deep Kapuria said Australia holds immense importance for India in view of India’s ambition of energy transition, which is critical for achieving net zero by 2070.
“A deeper trade agreement with Australia would help India in securing its needs of critical minerals,” Kapuria said.
