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Trading with India: a guide for Australian businesses

The economic partnership between Australia and India is growing.

The economic partnership between Australia and India is growing. The Economic Cooperation and Trade Agreement (ECTA) that came into effect on 29 December 2022 has created significant opportunities for businesses in both countries.

Under the ECTA:

  • 85% of Australian goods exported to India are tariff-free
  • 96% of imports from India are tariff-free

Plus, further tariff reductions are predicted in coming years.1

This guide explains how Australian businesses can benefit from increased trade with India.

The current economic situation

The global economic environment has been challenging over the past few years, with issues such as:

  • Supply chain disruptions
  • The transition to sustainable energy
  • Inflationary pressures
  • Rising interest rates2

Despite these challenges, Australia's economic fundamentals remain strong, with low unemployment, low under-employment, and high workforce participation.3

Although, consumer spending has been weak due to higher interest rates and inflation, there are signs inflation is easing. The Reserve Bank of Australia (RBA) is expected to cut the official cash rate, providing relief for businesses and households.4

Opportunities for Australian businesses

The ECTA has created several opportunities for Australian exporters and importers.

With the reduction in tariffs, Australian businesses can now export goods to India more competitively and import Indian goods at lower costs.5 This is particularly beneficial for industries like agriculture and manufacturing.

Support from financial institutions

Financial institutions like CommBank can help Australian businesses take advantage of better trade opportunities.

We offer trade finance, foreign exchange and transaction banking services to help businesses manage their international trade activities.6

Important things for businesses to consider

To make the most of trade opportunities with India, Australian businesses should:

  • Talk to advisors: seek independent, professional advice on how your business may trade internationally'
  • Understand the market: Research the Indian market to identify potential opportunities and challenges. Understanding market dynamics, consumer preferences and regulatory environment can help you make informed decisions and strategies
  • Leverage technology: Use digital platforms and tools to make your trade activities easier and more efficient. These can help you better manage your supply chain, track shipments and handle transactions.
  • Build relationships: Establish strong relationships with your Indian counterparts. This will help you navigate the complexities of international trade and create long-term business opportunities.
  • Stay informed: Keep up to date with the latest economic and trade policy developments. This will help you anticipate changes and adapt your strategies.

Now is the time to explore these opportunities and position your business for success in the Indian market.

Building stronger links between India & Australia

Our specialist business bankers are here to help you expand your business

Learn more

Things you should know 

1 Minister for Trade and Tourism, Trade deal unlocks access to India, 2022
2 Commonwealth Bank of Australia, https://www.commbankresearch.com.au, 2024
3 Commonwealth Bank of Australia, https://www.commbankresearch.com.au, 2024
4 Commonwealth Bank of Australia, RBA September Board meeting, 2024
5 Minister for Trade and Tourism, Trade deal unlocks access to India, 2022
6 Commonwealth Bank of Australia, Building business links between Australia & India, 2024

The Article has been published for general information purposes only. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this information, consider its appropriateness to your circumstances, if necessary, seek professional advice. The Bank believes that the information in the report is correct and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its compilation, but no representation or warranty, either expressed or implied, is made or provided as to accuracy, reliability or completeness of any statement made in the report. Credit provided by the Commonwealth Bank of Australia. Working Capital Solutions are only available to approved business customers and for business purposes only. Applications for finance are subject to the Bank’s eligibility and suitability criteria and normal credit approval processes. Business Foreign Currency Accounts must be linked to an eligible CommBank Australian Dollar (AUD) transaction or savings account. Fees may apply to the linked account. Certain currencies are only available for Business Foreign Currency Accounts and are subject to eligibility criteria. View Terms and Conditions for Foreign Currency Accounts and consider them before making any decision about these products. Read our Foreign Currency Account Terms and Conditions. The target market for products mentioned here will be found within the product’s Target Market Determination, available here. Terms and conditions for CBA products mentioned here can be viewed at https://www.commbank.com.au/important-info/business.html. View our Financial Services Guide (PDF). Financial Services Guide. Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945