India-Australia ECTA: Duty Concessions on Australian Imports to India (2026 Guide)

The India-Australia ECTA tariff schedule offers a mix of immediate duty elimination and long-term phased reductions. Understanding which category your product falls into is essential before placing orders with Australian suppliers. The following table summarises the key product groups and their 2026 duty status:

Wool (HS 5101) is arguably the most significant ECTA concession for Indian industry. Australian wool accounts for over 90% of global wool exports, and Indian textile mills — particularly in Ludhiana, Tiruppur, and Bengaluru's apparel clusters — rely heavily on Australian merino and crossbred wool. The phased reduction from 25% to 0% over five years gives Indian mills a predictable cost advantage over competitors using synthetic fibres or domestic wool.

Coal and LNG see immediate duty elimination. While the MFN rates on these products were already low (1% and 2.5% respectively), the move to 0% is symbolically important for India's energy security and for Australian miners seeking long-term supply contracts with Indian power and steel companies.

Pharmaceutical raw materials (HS 2941) and formulations (HS 3004) drop from 10% to 0-5%, supporting India's massive generic drug industry. Australian suppliers of high-purity APIs and biologics can now compete more effectively with European and Chinese sources.

For machinery imports from other sources, see our Germany import guide and machinery import guide.

The Form Australia-India Certificate of Origin is issued by the Australian Border Force (ABF) or through the Department of Foreign Affairs and Trade (DFAT) Approved Exporter arrangement. Under the Approved Exporter system, registered Australian exporters can self-certify the origin of their goods on the commercial invoice or a separate origin declaration, without applying for a separate certificate for each shipment.

The CoO must specify the origin criteria met: wholly obtained (WO), substantial manufacturing with change in tariff heading (CTH), or the 35% value content rule. For agricultural products like wool, the wholly obtained criterion is straightforward — Australian sheep produce Australian wool. For manufactured goods like mining equipment or pharmaceuticals, the value content or CTH rule applies.

Indian customs accept both paper and electronic CoO for ECTA claims. Electronic certificates must be verifiable through the ABF or DFAT online systems. At BLR airport and Chennai port, customs officers can cross-check the validity of an e-CoO in real time using the reference number and exporter registration.

As with all FTAs, the CoO must be presented with the Bill of Entry before or at the time of clearance. It cannot be submitted after Out-of-Charge. Importers who fail to present the CoO at filing pay full MFN duty and face a difficult refund process. Our CHA team verifies every Australian CoO for completeness and origin criterion accuracy before the Bill of Entry is filed. For a full customs process overview, see our customs clearance guide.

ECTA contains more products on sensitive lists than CEPA or ASEAN FTA, reflecting India's cautious approach to agricultural liberalisation. Understanding whether your product enjoys immediate or phased elimination is critical for procurement planning and price negotiations.

Immediate elimination applies to coal, LNG, wool, most mining equipment, and many pharmaceutical inputs. These products moved to 0% or near-0% upon entry into force or within the first year. If you are importing these products, you can already claim the full ECTA benefit.

Phased reduction applies to wine, almonds, macadamia nuts, and certain dairy products. Wine — the most politically sensitive category — drops from 150% MFN to 50% over 10 years, then to 25% in later years. As of 2026, Australian wine still faces approximately 100% BCD, making ECTA irrelevant for wine importers in the near term. Almonds and macadamias see reductions from 100% to 30-50% over 5-7 years.

The phased approach protects Indian farmers and domestic industry from sudden import surges. However, it also means that Australian suppliers of phased products cannot yet offer the sharp price reductions that Korean auto part suppliers can under CEPA. Importers should model the actual 2026 duty rate before assuming ECTA delivers savings. Use our landing cost calculator to compare MFN and ECTA scenarios.

The beneficiaries of ECTA fall into four clear categories, each with distinct operational advantages:

Indian textile mills importing Australian wool are the single largest winners. The 25% to 0% wool duty elimination improves the competitiveness of Indian woollen garments and worsted fabrics in export markets. Mills in Ludhiana, Kanpur, and Bengaluru's apparel manufacturing clusters should review their wool sourcing strategies immediately.

Pharmaceutical companies importing APIs and biologics from Australia gain 5-10 percentage points of BCD reduction. While Australia is not a major API supplier compared to China, Australian manufacturers of high-purity steroids, peptides, and biotech inputs offer quality advantages that justify the premium when ECTA reduces the duty gap.

Indian mining companies — particularly coal and iron ore operators — benefit from 0% duty on Australian mining equipment (HS 8430/8431) and immediate elimination on coking coal imports. This supports India's steel expansion plans and reduces the capital cost of mine mechanisation.

LNG importers gain marginal but meaningful savings from the 2.5% to 0% elimination, improving the economics of long-term LNG purchase agreements with Australian projects like Scarborough and Pluto Train 2.

Wine importers do not yet benefit from ECTA. With Australian wine still facing ~100% BCD in 2026, European and Chilean wines (under separate trade arrangements) remain more competitive on price. Importers should monitor the phased schedule but plan for MFN rates in the short term.

For a broader view of all FTA options, read our India FTA guide.