Amid the new age of globalization India and Australia had now boosted their ties with Australia by free trade agreement over 95% of the goods which in simple words mean the goods which will be traded between the two countries will only include the manufacturing and logistics cost, providing a full discount on the excessive taxes which were levied before.

The Australia-India Economic Cooperation and Trade Agreement is the first trade agreement that India signed with a developed economy after decades. The agreement is expected to give a massive push toward bilateral trade as this pact will not only help to eradicate or cut the tariffs but also contribute to ease other non-tariff barriers and restrictions such as technical barriers to trade, apart from phytosanitary and sanitary restraints.

With the world racing towards forging bilateral and trade pacts, it becomes extremely crucial for India to sign such regional partnerships with developed economies as Australia. As India is not part of any regional or bilateral trade bloc signing such an agreement will help India not only to strengthen its position as a major developing economy but will also help it become more self-sufficient following the initiative of Make in India and Atmanirbhar Bharat. According to the projected government estimates the trade is expected to double from the present $27 billion to $50 billion in five years. Thus with this pact, India will not lose out on preferential market share and weaken its export competitiveness.