India-Australia trade pact: CECA, BIT talks to deepen ties in critical minerals, investment

India and Australia are widening economic ties beyond trade, with CECA and BIT talks focusing on investment, critical minerals, education and skilled talent. (AI generated image)AI Quick ReadIndia and Australia are looking to deepen economic ties beyond their existing trade agreement, with negotiations on a broader economic pact and a bilateral investment treaty (BIT) underway, Commerce and Industry Minister Piyush Goyal said on Friday.

The push comes as the two countries seek to build a broader economic partnership spanning investment, critical minerals, education, manufacturing and professional services, with bilateral trade in goods and services already worth $50.2 billion in 2025.

Addressing the Institute of Chartered Accountants of India’s (ICAI) first Oceania International Conference 2026 in Australia, Goyal said India and Australia had decided to work towards a “very balanced, fair and equitable” comprehensive economic cooperation agreement.

India and Australia signed the Economic Cooperation and Trade Agreement (ECTA) in 2022 and are now negotiating to expand its scope into a broader Comprehensive Economic Cooperation Agreement (CECA). “We are working with Australia to have a bilateral investment treaty also,” Goyal said.

Goyal highlighted critical minerals as one of the areas where the two economies can complement each other. Australia has significant critical-mineral resources, while India is looking to expand manufacturing and processing capabilities.

“We have critical minerals. We have manufacturing and processing ambitions,” Goyal said, describing the two countries as complementary economies. The minister also pointed to opportunities in renewable energy technologies, saying closer cooperation could help both countries strengthen access to critical minerals and develop processing capabilities.

The investment treaty could provide an additional framework for businesses investing across the two markets. BITs generally establish protections for investors and are intended to support greater two-way investment. The economic partnership is also extending into professional services.

Goyal called on ICAI, Chartered Accountants Australia and New Zealand (CA ANZ) and CPA Australia to deepen their mutual recognition arrangements, which could make it easier for accounting professionals from both countries to work across markets.

He said professional bodies could help create a “seamless flow” of Australian chartered accountants into India while enabling Indian chartered accountants to serve Australian businesses. Goyal also urged chartered accountants to act as “compliance architects” and help reduce regulatory friction between the two economies.

The minister said India and Australia had already addressed cross-border taxation issues affecting some service providers, particularly information technology companies. He added that greater recognition of each other’s due-diligence processes could further reduce compliance costs for businesses and citizens.

Education is another area where India and Australia are looking to expand cooperation. Goyal suggested exploring dual-degree programmes that would allow Indian and Australian students to spend part of their studies in each other’s countries.

He also called on professional and educational institutions to act as bridges between the two economies. The push comes against the backdrop of substantial existing economic ties. Australia exported goods and services worth about $32 billion to India in FY2024-25, while imports from India stood at around $18 billion, according to government data.

At the end of 2025, Australia's investment stock in India was valued at $26.8 billion, while India's investment stock in Australia stood at $45.3 billion.