Australia’s Trade Minister Don Farrell said discussions with India will restart soon, underlining continued engagement between the two sides beyond their 2022 trade pact.
“We’re going to have another crack in India in the next few weeks,” Farrell said on Monday, pointing to gains from the existing agreement. He noted that trade between the two countries has already risen 17% since the deal came into force, benefiting Australian businesses.
Also read: India-US trade deal to be signed when Trump re-establishes tariff rates, Trade Secy says
Step-by-step approach, tough negotiations ahead
Farrell indicated that negotiations are unlikely to produce a sweeping, single-stage outcome, suggesting instead a gradual, phased process.
“With India, it’ll be step by step. We’re not going to get a big bang agreement,” he said, while speaking at National Press Club. “We’ll make progress. That’ll work for a while, then we go back and do some more.”
While acknowledging that both sides are keen to move forward, he cautioned that the process would not be easy, describing India’s Commerce Minister Piyush Goyal as a tough negotiator.
“India also has ‘great ambitions’ to reach a deal,” Farrell said, adding, “Piyush Goyal is a very hard man, so I wouldn’t anticipate an easy set of negotiations.”
Also read: Trump vows to bring back tariffs ‘in another form’ after Supreme Court blow
India’s market potential drives push
Canberra’s renewed push is largely driven by India’s long-term economic potential and expanding consumer base.
“India represents great opportunities. They have the ambition that by 2030, 900 million Indians will be in what they define as the middle class,” Farrell said.
“What do we know about people when their incomes rise? Well, they want better food and better wine. So here’s a wonderful opportunity.”
Rising incomes and consumption in India are expected to create demand for premium agricultural and food products—segments where Australian exporters are seeking deeper access.
Despite optimism, Farrell made it clear that a final agreement is not guaranteed, with talks likely to evolve over multiple rounds as both sides work through complex trade issues.
(With inputs from Bloomberg)