Explanation – The India-Australia Economic Cooperation and Trade Agreement (ECTA) aims to strengthen bilateral trade and investment, promoting economic ties between the two countries. It aligns with the strategic objective of reducing regional dependencies, particularly in light of Australia’s efforts to diversify its trade relationships following economic sanctions by China. The agreement boosts mutual access to markets, enhances trade in goods and services, and creates opportunities for economic growth, making it a significant step in counterbalancing regional economic dependencies.

Source: AIR