India to Australia Import Duty 2026: AI-ECTA Preference, GST, Trade Remedies
India to Australia under the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA, in force December 2022) zeros MFN duty on roughly 96 percent of Australian exports to India and 100 percent of Indian exports to Australia. Plus 10 percent Australian GST. Here is the full landed cost stack.
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Open calculatorIndia to Australia Import Duty 2026: AI-ECTA Preference, GST, Trade Remedies
The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA, sometimes ECTA) entered into force December 29 2022 and has transformed the bilateral trade lane. Australian importers now enjoy duty-free access on virtually all Indian industrial exports. Indian textile, jewelry, pharma, machinery, and chemical exporters have all benefited.
This guide covers the AI-ECTA framework, the staged elimination calendar for the residual lines, the GST mechanics, the active anti-dumping posture, and worked examples for the top categories.
The duty stack
| Layer | Rate | Notes |
|---|---|---|
| Australian MFN duty (under AI-ECTA) | 0 percent on 96.4 percent of lines as of entry, staged for remainder | AI-ECTA Annex tariff schedule |
| Anti-dumping (ADC measures) | Active orders on specific Indian commodities | ADC register |
| Australian GST | 10 percent | On customs value plus duty plus freight plus insurance |
| Customs entry fee | AUD 32 to AUD 130 | ABF |
| Excise on alcohol, tobacco, fuel | Separate | ATO |
Worked example: Indian textile to Australia
100,000 AUD of HTS 5208.32 cotton woven fabric from a Tamil Nadu mill.
| Charge | Rate | Base | Amount (AUD) |
|---|---|---|---|
| Australian MFN (AI-ECTA) | 0 percent | 100,000 | 0 |
| ADC | N/A | 0 | 0 |
| GST | 10 percent | 100,000 | 10,000 |
| Total | 10,000.00 |
Effective rate 10 percent (recoverable). Pre-AI-ECTA the MFN was 5 percent, so AI-ECTA saves 5,000 AUD per shipment.
India is now Australia's third-largest non-China textile source after Vietnam and Bangladesh, helped significantly by AI-ECTA zero MFN.
Worked example: Indian pharma to Australia
500,000 AUD of HTS 3004.90 generic medicaments (finished dosage form) from an Indian pharma producer.
| Charge | Rate | Base | Amount (AUD) |
|---|---|---|---|
| Australian MFN (AI-ECTA) | 0 percent | 500,000 | 0 |
| GST | 10 percent | 500,000 | 50,000 |
| Total | 50,000.00 |
Effective rate 10 percent. India is the largest pharmaceutical supplier to Australia by volume. AI-ECTA preference plus the established TGA (Therapeutic Goods Administration) approval pipeline for Indian generic manufacturers has made the India to Australia pharma lane extremely competitive.
Worked example: Indian machinery to Australia
300,000 AUD of HTS 8457.10 CNC machining center from an Indian machine tool builder.
| Charge | Rate | Base | Amount (AUD) |
|---|---|---|---|
| Australian MFN (AI-ECTA) | 0 percent | 300,000 | 0 |
| GST | 10 percent | 300,000 | 30,000 |
| Total | 30,000.00 |
Effective rate 10 percent (recoverable). Indian machine tools compete with Korean (under KAFTA), Taiwanese, and Chinese (under ChAFTA) alternatives. All four sources have effectively duty-free access to Australia via various FTAs. The decision factor becomes FOB pricing and machine specification, not landed cost.
Worked example: Indian jewelry to Australia
200,000 AUD of HTS 7113.19 jewelry of precious metal (gold) from an Indian jeweler.
| Charge | Rate | Base | Amount (AUD) |
|---|---|---|---|
| Australian MFN (AI-ECTA) | 0 percent | 200,000 | 0 |
| GST | 10 percent | 200,000 | 20,000 |
| Total | 20,000.00 |
Effective rate 10 percent. India is Australia's largest jewelry import source. Pre-AI-ECTA MFN was 5 percent. The preference cut a meaningful chunk off the landed cost of jewelry imports.
Worked example: Indian steel to Australia
200,000 AUD of HTS 7208.39 hot-rolled steel coil from JSW Steel India.
| Charge | Rate | Base | Amount (AUD) |
|---|---|---|---|
| Australian MFN (AI-ECTA) | 0 percent | 200,000 | 0 |
| ADC (review on Indian steel, currently 0 percent producer-specific for JSW assumed) | 0 percent | 0 | 0 |
| GST | 10 percent | 200,000 | 20,000 |
| Total | 20,000.00 |
Effective rate 10 percent. Indian steel into Australia is a price-competitive substitute for Chinese steel (which faces 40 to 64 percent Australian ADC on rebar and extrusions).
AI-ECTA rules of origin
Most product rules under AI-ECTA require:
- Wholly obtained or produced in India, or
- Produced exclusively from originating materials, or
- Satisfy the product-specific rule (typically tariff shift plus RVC of 35 to 40 percent transaction value).
Apparel chapter 61 to 62 require substantial transformation including cutting and sewing in India.
Steel and chemicals chapters 28 to 73 typically require substantial transformation from non-originating substrate.
The Indian exporter issues a Certificate of Origin Form CO under AI-ECTA, certified by the Export Inspection Council or other authorized Indian agencies.
What is changing through 2027
| Year | Cumulative percent of Indian exports duty-free under AI-ECTA |
|---|---|
| 2022 entry | 96.4 percent |
| 2023 | 97.2 percent |
| 2024 | 97.9 percent |
| 2025 | 98.5 percent |
| 2026 (current) | 99.1 percent |
| 2027 (full implementation) | 100 percent |
The remaining residual lines (small set of agricultural and processed food) finish elimination in 2027.
Documentation Australian Border Force wants
- Commercial invoice with HTS at 8-digit specificity, Indian-origin description, full description.
- Packing list.
- Bill of lading or airway bill.
- AI-ECTA Certificate of Origin Form CO.
- Customs entry via Integrated Cargo System (ICS).
- For ADC-covered categories: producer non-circumvention statement.
- For biosecurity-controlled goods (food, plant material): Biosecurity import conditions documentation.
Run your India to Australia shipment now
The LandedFees calculator handles AI-ECTA preference verification, the staged elimination calendar for residual lines, the active ADC orders against Indian product, the GST calculation, and the biosecurity flag for food and agricultural imports.
Calculate an India to Australia shipment
Citations
- Australia-India Economic Cooperation and Trade Agreement: https://www.dfat.gov.au/trade/agreements/in-force/ai-ecta
- AI-ECTA staged tariff elimination calendar: DFAT
- Australian Anti-Dumping Commission measures in force: https://www.industry.gov.au/anti-dumping-commission
- Australian Border Force: https://www.abf.gov.au
- ATO GST on imports: https://www.ato.gov.au
- Indian Export Inspection Council (Certificate of Origin): https://www.eicindia.gov.in
Frequently asked questions
What does AI-ECTA do?
The Australia-India Economic Cooperation and Trade Agreement entered into force December 29 2022. Australia immediately eliminated tariffs on 96.4 percent of Indian exports to Australia. The remaining 3.6 percent are on a 5-year staged elimination through 2027. For Indian exporters, AI-ECTA effectively means duty-free access to Australia.
Are there any Indian exports that still pay MFN?
A small list of agricultural and processed food items still in the staged elimination phase. Most industrial goods (machinery, textiles, chemicals, pharma, electronics, jewelry) are at zero MFN since the entry-into-force date in 2022.
What is Australian GST on imports?
10 percent GST applied to customs value plus duty plus international transport and insurance. Recoverable for GST-registered Australian importers as input tax credit on the BAS.
Are there active Australian anti-dumping orders on Indian product?
Active ADC measures against Indian-origin: certain steel rebar (review ongoing), certain stainless steel, ammonium nitrate, certain canned vegetables. Check the Anti-Dumping Commission's measures in force.
What is the AI-ECTA rule of origin?
Each product has a specific rule. Most chapter 84 to 85 machinery requires regional value content of 35 to 40 percent transaction value. Apparel chapter 61 to 62 requires substantial transformation. Steel chapter 72 to 73 requires melt and pour in India.
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