Which of the following best reflects the strategic impact of the India-Australia Economic Cooperation and Trade Agreement (ECTA) after three years of implementation?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. ECTA led to 14% export growth (2022-24) and added new items like Air Liquefaction Machinery.
Since its implementation in late 2022, the India-Australia ECTA has significantly boosted bilateral trade. Indian exports to Australia grew by approximately 14% between 2022 and 2024. Strategically, the agreement diversified India’s export basket; while traditional sectors like textiles remained strong, new high-tech and industrial items—such as Air Liquefaction Machinery, specialized electronic integrated circuits, and smartphones—emerged as key growth drivers, demonstrating the agreement's role in moving India up the value chain.