India to ink economic agreement with Australia: All you need to know

India and Australia will finalise the Comprehensive Economic Cooperation Agreement and an interim trade agreement as Prime Minister Narendra Modi and his Australian counterpart Scott Morrison meet on Monday for a virtual summit. 

In his early remarks on Monday, PM Modi said that the early conclusion of the ongoing negotiations on the economic agreements is key to both nations. 

Also Read: Quad has accepted India’s stance on Ukraine-Russia: Australian diplomat

What is the likely yield of the agreements?

The interim trade agreement is usually agreed upon before a Free Trade Agreement (FTA) is finalised and is aimed to liberalise tariffs on the trade of select goods.

India’s Commerce Minister Piyush Goyal earlier said that mining, pharmaceuticals, health, education, renewables, railways, gems and jewellery, tourism, defence and textiles will be receiving increased opportunities from Australia, according to reports from Indian Express.

Indian students and professionals may also face eased visa processes after Australia agrees to the interim trade agreement.

A cross-linked economic framework?

Australia and India are members of the Quad alliance, along with the United States and Japan. Australia reportedly already has such agreements in place with the other two Quad members, which means if India also enters into a similar agreement, a possible cross-linked economic framework between the alliance can be created, according to reports from Indian Express.

Also Read: Japan PM pitches for unity in Modi meet amid Ukraine crisis

Are there other such economic deals in the pipeline?

In addition to ongoing negotiations with Australia, India is also attempting to seal Free Trade Agreements with Canada, United Arab Emirates, the United Kingdom and European Union and Israel. 

While the main focus remains on completing Free Trade Agreements with multiple countries, India is on the verge of sealing harvest agreements with the United Kingdom and the United Arab Emirates.