Australia has come out in support of India’s ambition to be a 100% electric vehicle nation by 2030. On Wednesday, Australia’s High Commissioner to India, Barry O’Farrell, met with the CEO of Himadri Specialty Chemical Limited Anurag Chaudhary in Kolkata, West Bengal, where they reaffirmed Canberra’s support for India’s ambition to be a 100% electric vehicle nation by 2030. They also highlighted the benefits of the India-Australia Economic and Trade Cooperation Agreement (ECTA) for the company, and how it will help the country achieve its goal of boosting the electric vehicle industry.
The Australian High Commissioner to India shared a tweet with a photo of him sitting with Anurag Chaudhary. He wrote: “Australia supports India’s ambitions in the electric vehicle industry. Outlined the practical benefits of #IndAusECTA – including the elimination of duties on critical minerals – to Himadri Limited, a manufacturer leader in materials for #lithium ion batteries.”
Learn more about ECTA
ECTA was signed on April 2, motivated by a desire to minimize their economic dependence on China. This is India’s first trade deal with a developed country in nearly a decade, and it establishes an institutional system to boost bilateral trade. India’s 17th largest trading partner in Australia, while Australia is India’s ninth largest trading partner.
Over the next five years, ECTA is expected to nearly quadruple bilateral trade, from $27.5 billion in 2021 to $45-50 billion. The agreement is expected to create new job opportunities, raise living standards and improve the general well-being of citizens of both countries. Over the next five years, ten additional jobs are expected to be created.
The agreement is also expected to boost bilateral trade by eliminating or lowering tariffs on a wide range of products, as well as tackling non-tariff barriers such as technical barriers to trade and sanitary and phytosanitary constraints. Over 85% of Australian exports to India will be duty free under the deal, rising to 91% within a decade. Australian Prime Minister Scott Morrison said the deal was based on a strong security alliance and their collaborative efforts within the Quad, creating the opportunity for the economic relationship to progress to a new level, according to ANI.