India and Australia are ramping up negotiations to expand trade and economic cooperation. In a joint statement following a meeting between Commerce Minister Piyush Goyal and Australia’s Trade Minister Don Farrell in Melbourne, both sides are committed to finalizing their talks on an Economic Cooperation Agreement.
The Indian Commerce Ministry emphasized that it is looking forward to implementing a Comprehensive Economic Cooperation Agreement (CECA) between India and Australia. It noted, “The constructive discussions focused on unlocking the full potential of the India–Australia Economic Partnership.”
India and Australia’s talks centered on the CECA framework
During their recent meeting, the two also reviewed the progress made so far on the CECA framework. They discussed ways to enhance trade relations and economic cooperation in goods, services, and investment.
The Indian government confirmed, “Both sides reaffirmed their commitment to work constructively towards the early conclusion of a balanced and mutually beneficial CECA, building on the foundation of the India–Australia Economic Cooperation and Trade Agreement (ECTA), which entered into force in December 2022.”
Originally, Canberra expected to get a trade deal with India by the end of 2023, building on the existing agreement.
For FY25, the total trade volume between the two nations reached $24.1 billion, driven by a 14% increase in Indian exports in FY24 and an additional 8% rise in FY25.
Goyal also held trade discussions in Auckland this week and stated on Friday that India and New Zealand are close to striking a free trade deal. Still, India has yet to resolve its tariff situation with the US. President Trump had earlier slapped 50% tariffs on Indian exports to the US, seeking leverage over New Delhi’s oil imports from Russia.
However, more recently, the American president has insisted that negotiations with India are progressing well, and he plans to visit the Asian country in 2026. He claimed that India had largely reduced its oil purchases from Russia.
Indian minister Goyal also met with business figures from the Indian diaspora to discuss trade and investment opportunities.
India and Bahrain held discussions to strengthen their ties
Bahrain and India reiterated on Monday their determination to further deepen defense and security cooperation. Foreign Minister Abdullatif bin Rashid Al Zayani and S. Jaishankar, the Minister of External Affairs of India, met to discuss their bilateral relations and future areas of collaboration. A joint statement said the two nations aim to expand trade in electronics, petroleum, processed food, base metals, and gems and jewelry.
Additionally, the two governments strongly denounced all acts of terrorism, including the attack at Pahalgam on April 22. They pledged to fight against cross-border terrorism by working together on intelligence, cybersecurity, and technology collaboration, as well as increased cooperation among its members. They also initiated talks on the Comprehensive Economic Partnership Agreement, or CEPA.
In addition to this, the two countries agreed to commence discussions on a DTAA to avoid conflict of taxes, enhance fiscal transparency and promote the development of business. Jaishankar even claimed that signing a bilateral investment treaty, along with CEPA, will further strengthen economic relations; India also welcomes Bahraini investment in its market.
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