India and Australia have announced the launch of formal negotiations for a comprehensive market opening pact and agreed to double bilateral trade to $40 billion in the next five years.
“It was agreed that the first meeting for this purpose (starting of negotiations for comprehensive economic cooperation agreement) would be scheduled by June or July,” India’s Commerce and Industry Minister Mr Anand Sharma told reporters here in a joint press conference with the Australian Trade Minister, Mr Craig Emerson.
The first round of talks will be held in New Delhi.
Mr Sharma also that both the countries have agreed to double their bilateral trade from $20 billion at present to $40 billion during the next five years.
Free trade agreement is important to enhance economic integration to enable trade and investments to flourish. Both the sides also discussed the work being done for economic engagement including negotiations on double taxation, social security and film production.
“The FTA will help in removing non-tariff barriers that impede trade and services, facilitating investments and addressing the behind the border restrictions to trade,” Mr Sharma said.
“We are also looking at enhanced cooperation with the Australian entrepreneurs in pharmaceuticals and other sectors to increase the share of Indian exports to Australia,” he added.
India is Australia’s third largest export market. Both the sides also announced the setting up of a CEO’s Forum which would be co-chaired by Congress MP and industrialist Mr Naveen Jindal from the Indian side and Mr Linday Fox from the Australian side.
The forum would provide business guidance and advice to the governments of both the countries, Mr Emerson said.
A joint statement said that both the ministers discussed the ways in which Australian resources and energy exports to India can serve as a crucial motor of Indian economic growth.