India and Australia are looking to deepen their economic ties, with both countries pushing to accelerate negotiations on a Comprehensive Economic Cooperation Agreement (CECA). The proposed deal covers several key sectors, including pharmaceuticals, services, investment, agricultural technology and critical minerals.

The discussions could open new opportunities for businesses in both countries, particularly those looking to expand into overseas markets, build stronger supply chains or attract investment.

India’s Commerce and Industry Minister Piyush Goyal met Australian Trade Minister Don Farrell on the sidelines of the G20 Trade Ministers’ Meeting in Milwaukee in early October. The two ministers reviewed progress under the existing Economic Cooperation and Trade Agreement (ECTA) and discussed ways to move negotiations on the broader CECA forward.

Both countries are also working towards a bilateral investment treaty that could provide a clearer framework for companies investing across the two markets.

The aim is to build on the progress made under the existing trade agreement while addressing areas where businesses still face barriers. However, CECA negotiations are ongoing, and the final outcome will depend on what both governments can agree on.

WHAT HAPPENED?

India and Australia are seeking to take their trade relationship beyond the arrangements already in place.

The two countries signed ECTA in 2022, and the agreement came into force in December of that year. It reduced or eliminated tariffs on a range of goods, giving exporters in both countries better access to each other’s markets.

The proposed CECA is intended to take that relationship further by covering additional areas of trade and economic cooperation.

During their meeting in Milwaukee, Goyal and Farrell discussed speeding up negotiations and reviewed how the existing agreement was working. Pharmaceuticals, services, investment, agricultural technology and critical minerals were among the areas on the agenda.

The discussions go beyond simply increasing the value of goods traded between the two countries. Both governments want to encourage investment, create opportunities for businesses and improve access to strategically important resources.

For Indian companies, a broader agreement could make it easier to reach Australian customers and expand into new markets. Australian businesses, meanwhile, could find opportunities in India’s growing economy, particularly in resources, education, technology and professional services.

Still, an agreement to accelerate negotiations does not mean a final deal is close to completion. The details will matter, including which sectors receive better market access, what exceptions apply and how any new commitments will be implemented.

WHY PHARMACEUTICALS ARE IN FOCUS

Pharmaceuticals are one area where closer cooperation could benefit both countries.

India has a well-established pharmaceutical manufacturing sector, with companies producing generic medicines and active pharmaceutical ingredients for domestic and international markets. Australia, meanwhile, has a developed healthcare system and a continuing need for reliable supplies of medicines that meet strict safety and quality standards.

A broader trade agreement could create opportunities for pharmaceutical companies to expand commercial partnerships and improve access to overseas markets. Indian manufacturers could benefit from more favourable trade conditions, while Australian buyers could gain access to a wider range of suppliers.

However, pharmaceutical trade involves more than tariffs. Medicines must meet regulatory requirements covering safety, quality, manufacturing and product registration. Approval procedures and purchasing arrangements can also influence whether companies can enter a market successfully.

That means the practical benefits of CECA will depend on the specific provisions agreed by both governments and how those provisions work in practice.

Both sides will need to ensure that efforts to expand trade go hand in hand with patient safety and reliable medicine supplies.

SERVICES COULD OPEN NEW DOORS FOR INDIAN COMPANIES

Services are another important part of the proposed agreement.

India has a strong presence in information technology, consulting, business-process management, engineering and other professional services. Australia has demand across technology, finance, education and several other service industries.

Trade negotiations could help address some of the rules and procedures that make it harder for businesses and professionals to operate across borders. These include licensing requirements, recognition of professional qualifications, taxation issues and regulatory compliance.

Goyal has highlighted progress in addressing cross-border taxation issues affecting certain service providers, particularly IT companies. He has also called for stronger cooperation between professional bodies, including accounting organisations, to make it easier for qualified professionals to work across both markets.

For Indian IT and consulting firms, clearer rules could make it easier to serve Australian clients. Australian companies could also benefit from closer access to India’s technology sector and professional talent.

However, a trade agreement will not automatically remove every obstacle. Visa requirements, licensing rules and professional standards will continue to influence how services are delivered.

The real test will be whether negotiations lead to practical changes that businesses can use without facing unnecessary delays or costs.

CRITICAL MINERALS EMERGE AS A STRATEGIC PRIORITY

Critical minerals could become one of the most significant parts of the India–Australia economic relationship.

Australia has substantial mineral resources, while India is looking to strengthen its manufacturing capabilities and secure supplies for clean energy and advanced industries. Minerals used in batteries, renewable-energy equipment, electronics and other technologies are becoming increasingly important to economic growth and national security.

Closer cooperation could lead to longer-term supply agreements, investment in processing facilities and partnerships between businesses and research institutions.

For India, dependable access to critical minerals could help support electric vehicles, renewable power and advanced manufacturing. For Australia, stronger links with India could create new markets for its resources and opportunities to expand into mineral processing and other value-added activities.

Both countries have already identified critical minerals as an important area of cooperation in their broader economic and strategic relationship. Investment, reliable supplies and stronger processing capabilities are central to that effort.

But building these supply chains will take time. Mining and processing projects require substantial funding, infrastructure, technology and environmental approvals. A trade agreement can help create favourable conditions, but it cannot guarantee that new projects will move ahead or that additional supplies will become available immediately.

Ultimately, the success of this cooperation will depend on whether it leads to commercially viable projects and more reliable supply chains.

INVESTMENT TIES COULD RECEIVE A BOOST

Alongside the wider trade negotiations, India and Australia are working towards a bilateral investment treaty.

Such a treaty can establish rules intended to give investors greater clarity and confidence when committing money to projects in the other country. Its effectiveness will depend on the final terms, including investor protections, dispute-resolution arrangements and the responsibilities of both governments.

The proposed treaty could complement CECA by addressing investment-related issues that may not be fully covered by the trade agreement.

The economic relationship already has a substantial investment base. Figures cited in recent reporting put Australia’s investment stock in India at A$26.8 billion at the end of 2025, while India’s investment stock in Australia stood at A$45.3 billion. Bilateral trade in goods and services reached A$50.2 billion in 2025.

These figures highlight how the relationship extends beyond the exchange of goods. Companies in both countries have interests in education, resources, professional services and a range of other industries.

A clearer investment framework could encourage further activity, although businesses will continue to weigh market demand, operating costs, regulatory conditions and the likely returns from individual projects.

ECTA PROVIDES THE FOUNDATION FOR THE NEXT PHASE

The existing ECTA remains an important part of the negotiations.

The agreement improved tariff access and gave businesses in both countries a foundation for expanding trade. According to figures reported by India’s Commerce Ministry, Indian exports to Australia more than doubled between FY2020–21 and FY2024–25, increasing from around US$4 billion to US$8.5 billion.

The latest ministerial discussions included a review of ECTA's implementation, with particular attention to helping Indian businesses make better use of the preferential and duty-free access already available.

That is an important part of the process. Lower tariffs do not automatically translate into higher exports. Businesses must understand product-specific rules, prepare the right documentation and follow customs procedures to qualify for the available benefits.

Smaller exporters may also need help identifying buyers, researching demand and meeting certification requirements. Without that support, some companies may struggle to benefit fully from an agreement, even when tariff barriers have been reduced.

The proposed CECA will therefore need to build on the gains made under ECTA while addressing other barriers that continue to affect businesses.

WHAT COULD THE AGREEMENT MEAN FOR BUSINESSES?

If negotiations result in a practical and commercially useful agreement, the benefits could reach several industries.

PHARMACEUTICALS: Better commercial opportunities and stronger supply-chain partnerships, subject to regulatory requirements.

IT AND PROFESSIONAL SERVICES: Potentially easier cross-border service delivery and closer cooperation between professional organisations.

CRITICAL MINERALS: More opportunities for long-term supply agreements, investment and processing partnerships.

AGRICULTURAL TECHNOLOGY: Greater scope for cooperation in agricultural innovation, technology and productivity.

EDUCATION AND SKILLS: Stronger institutional partnerships, professional development and collaboration between universities and training providers.

INVESTMENT: A clearer framework for companies considering new projects or expanding existing operations in either country.

The scale of these benefits will depend on the final terms, how quickly they are implemented and whether businesses can compete effectively in each other’s markets.

The agreement should ultimately be judged by tangible results, including higher trade volumes, new investment, lower compliance costs and greater participation by businesses of different sizes.

THE CHALLENGES THAT REMAIN

Despite the renewed push, several difficult issues may still need to be resolved.

Trade negotiations often involve disagreements over market access, regulatory standards and the protection of sensitive domestic industries. India and Australia will need to find terms that deliver meaningful economic benefits while respecting their respective policy priorities.

That could involve negotiations over tariffs, product standards, professional qualifications, investment protections and the timetable for implementing commitments.

Each sector presents its own challenges. Critical-mineral projects need financing, infrastructure and environmental approvals. Pharmaceutical companies must meet strict regulatory requirements, while services businesses often face rules that cannot be addressed through tariff reductions alone.

Both governments will also need to consider how the agreement works for smaller businesses. Large companies may have the resources to navigate complicated trade procedures, but smaller exporters can face much higher costs relative to their size.

Clear rules and simpler procedures could help more businesses take advantage of the agreement. Broad commitments without effective implementation, on the other hand, may leave companies with fewer practical benefits than expected.

For now, the negotiations signal a clear intention to deepen economic ties. Whether that ambition translates into a meaningful commercial advantage will depend on the details of the final agreement.

FACT CHECK METER

FACT METER: REVIEW REQUIRED

STATUS: CECA NEGOTIATIONS UNDERWAY — NO FINAL AGREEMENT CONFIRMED IN THIS REPORT

CONFIRMED IN THE PROVIDED REPORT

  • India’s Commerce and Industry Minister Piyush Goyal and Australia’s Trade Minister Don Farrell discussed accelerating CECA negotiations in early October 2026.

  • The discussions covered pharmaceuticals, services, investment, agricultural technology and critical minerals.

  • ECTA came into force in December 2022.

  • India and Australia are pursuing a bilateral investment treaty.

  • Critical minerals and supply-chain cooperation are important areas in their broader economic relationship.

IMPORTANT DISTINCTIONS

  • CECA remains under negotiation; discussions do not amount to a signed or implemented agreement.

  • Final tariff schedules and comprehensive market-access provisions have not been established in the text provided.

  • Potential gains in pharmaceuticals, services and critical minerals will depend on the final terms, regulatory requirements and actual business investment.

  • The trade and investment figures cited in this report should be checked against current official sources before publication.

AWX VERDICT

India and Australia are looking to build a deeper economic partnership through expanded trade negotiations. The priorities are clear, but the real economic impact will depend on the commitments both governments reach and whether businesses can turn those commitments into new commercial opportunities.

WHAT TO WATCH NEXT

  • CECA negotiations: Whether the two governments announce a clearer timetable or make progress on outstanding issues.

  • ECTA implementation: Whether more Indian exporters take advantage of the preferential access already available in Australia.

  • Pharmaceutical market access: Whether the talks lead to practical improvements for manufacturers and exporters.

  • Services and professional mobility: Whether regulatory and qualification barriers become easier to navigate.

  • Critical-mineral projects: Whether businesses announce new supply agreements, processing investments or joint ventures.

  • Investment treaty negotiations: Whether both countries make progress towards a bilateral investment framework.

  • Trade figures: Whether two-way trade and investment continue to grow as negotiations advance.

The next phase will be judged less by statements of intent and more by progress at the negotiating table and the opportunities businesses can actually use.

THE AWX BOTTOM LINE

India and Australia are seeking to strengthen their economic relationship by accelerating negotiations on a comprehensive trade agreement covering pharmaceuticals, services, investment, agricultural technology and critical minerals.

For New Delhi, the potential gains include better opportunities for Indian exporters, expanded services trade and stronger access to Australia’s mineral resources. For Canberra, closer ties could create opportunities in resources, education, investment and technology.

The existing ECTA provides a foundation for this next phase, while the proposed CECA and bilateral investment treaty could broaden the relationship further.

But negotiations alone will not deliver the benefits businesses are looking for. The final terms, regulatory arrangements and implementation process will determine how much each side gains.

The push for a stronger trade relationship is clear. The real test is whether it leads to better market access, fresh investment and measurable gains for businesses in both countries.

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