Zero-Duty Boost: India's Exports to Australia Set for Revival in 2026

India's exports to Australia are poised for a significant boost with zero-duty access starting January 1, 2026, following the India-Australia Economic Cooperation and Trade Agreement. This measure is expected to enhance export competitiveness, despite a narrowing trade deficit attributed to declining imports rather than robust export growth.

Starting January 1, 2026, Indian exports to Australia will enjoy zero-duty access, a move anticipated to enhance India's export competitiveness by removing tariff barriers and expanding price advantages, according to a recent report by Rubix Data Sciences. The change comes amid a narrowing trade deficit, largely due to decreased imports rather than stronger export performance.

The India-Australia Economic Cooperation and Trade Agreement (ECTA) has opened doors for tariff concessions on all Indian exports, with 98.3% of tariffs lifted immediately and the remaining phased out. This tariff elimination is expected to bolster Indian exports and improve the trade balance between the two countries, although the report notes that the trade deficit reduction is more a result of declining imports.

Despite these developments, India's exports to Australia have grown only modestly, from USD 7 billion to USD 7.3 billion, with refined petroleum products leading the export list. On the import front, India has reduced purchases from Australia, with coal imports decreasing significantly, although imports of gold, copper ores, and other commodities have increased. The ECTA, enacted in 2022, continues to facilitate trade improvements between the two nations.