India, Australia to jointly study benefits of FTA

New Delhi, Aug 31: India and Australia have agreed to undertake a joint feasibility study into the benefits of a free trade agreement (FTA) between both countries, Commerce Ministry said today.

The two governments will initially hold bilateral meetings to discuss the terms of reference for the FTA feasibility study which will begin later this year and is expected to be completed in 2009, it added.

The study is expected to provide a timely opportunity to examine potential for growth in trade and investment between the two countries that could flow from a bilateral FTA.

Two-way trade in goods and services between Australia and India was 7.76 billion dollars in 2006-07, the ministry said.

India is emerging as one of the key drivers for global economic growth and its economic rise will be increasingly critical to world economic development.

Australia's established economic strength and competencies make it a significant trading partner for many countries, including India.

UNI