Due to exporters delaying shipments to take advantage of the 5% tariff reduction provided by the India-Australia Free Trade Agreement, which went into effect on December 29, India's exports to Australia decreased by 62% in December 2022.
Many exporters held back or delayed shipments as the India-Australia Economic Cooperation and Trade Agreement (ECTA) went into effect in order to profit from the 5% duty reduction.
According to Export Import Data
., Exports fell by 62% in December as a result, according to Tapan Mazumder, Additional DGFT, Department of Commerce, Ministry of Commerce and Industry, Government of India.
He was speaking at a business outreach session on the opportunities and benefits of the ECTA broken down by sector. CII in this location today organised the session. Under the ECTA, Australia is granting zero-duty access to India for all of its tariff lines.
According to the Certificate of Origin (CO), particularly for industries like gems and jewellery, textiles, engineering products, and transmission lines, he predicted that India's exports would rise dramatically in January.
A CO is a crucial document for international trade that attests that all of the products in a specific export shipment were entirely acquired, produced, manufactured, or processed in that nation.
Also, he stated that India's labor-intensive industries, which are currently subject to an import charge of 4-5% by Australia, will see the biggest increase.