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India’s Pharma emerges as key beneficiary of India-Australia trade pact
According to India's commerce ministry, Indian exports of drugs and pharmaceutical products to Australia on preferential lines, saw the highest on-year percentage jump to 52% in the first seven months of the current fiscal.
- By PharmaNews Live Desk
- New Delhi
- Jan 02, 2024
Drugs and pharma sector has emerged as one of the biggest beneficiaries of the India, Australia Economic Cooperation and Trade Agreement (ECTA), which came into force on 29 December 2022.
According to India's commerce ministry, Indian exports of drugs and pharmaceutical products to Australia on preferential lines, saw the highest on-year percentage jump to 52% in the first seven months of the current fiscal. The exports of drugs and pharmaceuticals were at $422.28 million against $372.39 million.
The other sectors with the highest percentage of gains include engineering goods and electronic products. Between January and November this year, exports of engineering goods increased to $1,280.06 million against $1,257.39 million in the same period last year.
India's exports to Australia along preferential lines jumped 17.8% on-year to $1.58 billion in April-October 2023, as per the ministry.
Preferential lines refer to preferential access, primarily through duty cuts, given by nations to each other's markets as part of trade pacts signed between them.
According to official data, India’s overall exports to Australia grew 14% year on year in April and November 2023 while imports fell to 19% during the same period.
“The free trade agreement with Australia was done seeing the comparative advantages, and industry has been making use of the same. There are early signs of export growth in the areas where there were preferential tariffs,” said Rajesh Agarwal, Additional Secretary in the Commerce Ministry, on December 29.
India has offered preferential access to Australia on more than 70% of its tariff lines. These include raw materials and intermediaries such as coal, mineral ores and wines.