'Watershed moment': PM Modi after signing trade pact with Australia
India and Australia on Saturday inked the India-Australia Economic Cooperation and Trade Agreement or 'IndAus ECTA' in a virtual ceremony attended by Prime Minister Narendra Modi and his Australian counterpart Scott Morrison. PM Modi called the pact a "watershed moment," saying it will boost the economic potential of the two countries and contribute to the Indo-Pacific region's supply chain resilience and stability.
Why does this story matter?
- The move, which was made possible by an interim agreement, is projected to assist Indian exporters from over 6,000 different industries, including textiles, leather, furniture, jewelry, and machinery.
- The pact was inked as India and Australia relations went for 10 years in the making.
- Australia is India's 17th-largest trading partner, whereas New Delhi is Canberra's 9th-largest trading partner.
What did PM Modi say?
"Consensus on such an important agreement in such a short period of time shows the mutual trust between the two countries. This is truly a watershed moment for our bilateral relations," said PM Modi after signing the deal. "On the basis of this agreement, together we will be able to contribute to increasing supply chains resilience and stability of Indo-Pacific region," he added.
Announced $282 million in new initiatives: Morrison
Prime Minister of Australia Scott Morrison, while speaking on the occasion, said that the trade accord inked with India will "deepen" the strong ties." "The pace and scale of our cooperation since we announced our comprehensive, strategic partnership has been remarkable. The $282 million in new initiatives that my government has announced including at the summit will drive our expanding cooperation," he said.
Australian High Commissioner to India tweets about the development
India expecting creation of 1 million jobs
Meanwhile, Indian commerce minister Piyush Goyal said that the IndAus ECTA symbolizes the solidarity and deep links between the people of both countries. "It is a historic day for our ties and is the first agreement India has entered with a large developed economy in a decade," he said adding that he expects the creation of one million jobs in India within five years.
Pact will boost bilateral trade: Goyal
According to Goyal, the pact would boost bilateral trade from $27 billion to $45-50 billion in the next five years. From the start, Australia will grant India duty-free access to around 96.4 percent of its exports (by value).
