Australia lauds India's goal to become 100% EV by 2030; highlight benefits of ECTA

Australia came forward in support of India's ambition of being a 100% electric vehicle nation by the year 2030. On Wednesday, Australia's High Commissioner to India Barry O'Farrell met the CEO of Himadri Speciality Chemical Limited Anurag Chaudhary in Kolkata, West Bengal where he reaffirmed Canberra's support for India's ambition of being a 100% electric vehicle nation by 2030. They also highlighted the benefits of the India-Australia Economic Cooperation and Trade Agreement (ECTA) to the company, and how it will help the country achieve its goal of boosting the EV industry.

Australian High Commissioner to India shared a tweet featuring a picture of him sitting with  Anurag Chaudhary. He wrote, "Australia is supporting India's ambitions in the EV industry. Outlined practical benefits of #IndAusECTA - including the elimination of duties on critical minerals - to Himadri Limited, a leading manufacturer of #lithium ion battery material."

More about ECTA

ECTA was signed on April 2 which is motivated by a desire to minimize their economic reliance on China. It is India's first trade deal with a developed country in almost a decade, and it establishes an institutional system to boost bilateral commerce. India's 17th largest trading partner in Australia, while Australia is India's ninth-largest commercial partner.

In the next five years, the ECTA is predicted to nearly quadruple bilateral trade from USD 27.5 billion in 2021 to $45-50 billion. The deal is anticipated to produce new job opportunities, raise living standards and improve the overall well-being of both countries' citizens. Within the next five years, an additional ten lakh jobs are predicted to be created.

The agreement is also expected to boost bilateral trade by eliminating or lowering tariffs on a wide range of goods, as well as addressing non-tariff barriers such as technical trade barriers and sanitary and phytosanitary constraints. Over 85% of Australian exports to India will be tariff-free under the agreement, rising to 91% in a decade. The Prime Minister of Australia Scott Morrison stated that the deal has been based on the strong security alliance and their collaborative efforts in the Quad, creating the possibility for the economic relationship to progress to a new level, according to ANI.

(Inputs from ANI)