GS Paper - 2 (International Relations)

India and Australia agreed to sign a Comprehensive Economic Cooperation Agreement (CECA) by the end of 2022 preceded by an interim agreement before Christmas this year. The comprehensive agreement will cover trade in goods and services, and a pact on investments as well.

What

  1. The statement said both ministers discussed a range of issues during the 17th India-Australia Joint Ministerial Commission meeting including resolution of tax-related issues faced by Indian software firms in Australia.
  2. Both ministers also agreed to work towards an ambitious and balanced outcome at the 12th WTO Ministerial Conference in Geneva, Switzerland, to be held at the end of this year.
  3. India’s exports to Australia amounted to $4.04 billion while imports were $8.24 billion in FY21.
  4. Major Indian exports to Australia are petroleum products, medicines, polished diamonds, gold jewellery, apparel etc, while key Australian exports to India include coal, LNG, alumina and non-monetary gold.
  5. In services, major Indian exports include travel, telecom and computer, government and financial services, while Australian services exports were principally in education and personal travel.
  6. In 2020, India was Australia’s seventh-largest trading partner and sixth largest export destination, driven by coal and international education.