Strong bilateral trade has existed between India and Australia for decades, and it has only become stronger over the years. In lieu of the recent India-Australia trade pact, exporters will now receive duty-free access to the Australian market for over 6,000 product sectors of India. Moreover, India’s micro, small, and medium enterprises (MSMEs) have the potential to explore over USD 2 billion in new export opportunities in Australia.
Looking at the numbers, exporting from India to Australia is one of the most profitable routes to taking cross-border business worldwide. Let’s see how.
Why Should You Ship To Australia?
- Growing Exports From India
In 2018, India exported USD 3.74 Billion to Australia in product categories of Petroleum oils, pharmaceuticals (especially medicaments), and precious stones like diamonds. Other major exports from India to Australia include agricultural products, leather and leather goods, footwear, textile, clothing and makeup, chemicals and chemical products.
- Migration For Educational Purposes
Australia is home to a very large number of Indians, half of them being students pursuing higher education, and another half for work-related reasons. The country is the world’s second highest overseas education destination for Indian students as of today. The demand for intrinsic Indian merchandise is therefore, always at a peak in the country.
- Geographic Associations
Australia had wrapped up trade agreements with Asian countries such as Japan, China and Korea, linking it closely to Asia in terms of potential trade in the days to come. Moreover, the nation has also been actively involved in participating with regional forums such as APEC (Asia-Pacific Economic Cooperation) and ASEAN (Association of South-East Asian Nations).
- Developing Infrastructure
Australia is on a focus to develop its cities’ infrastructure to a top notch – including roadways, railway lines, ports, and healthcare facilities, all of which contributes highly to its foreign investment. India has a very high scope in this duration of extensive project demands to export raw materials into the country.
- Impressive Middle-Class Population
Australia has a large and growing middle-class population willing to spend on quality goods and services. According to the HILDA survey, it’s agreeable to say that Australia’s middle-class population is either consistent or gradually increasing. As per the survey, around 80% of Australians are considered middle class. This growing middle class has more disposable income to spend on quality imported products from India in various categories like garments, jewellery, food and beverages, etc.
- Rising eCommerce
eCommerce is growing rapidly in Australia, with online retail sales projected to reach $37.10 billion in revenue in 2024, growing at a CAGR of 8.33% from 2024 to 2028, reaching a market volume of $49.47 billion by 2028. This provides Indian exporters an opportunity to reach the Australian market through online platforms.
Selling online allows targeting niche consumer segments and provides access to customers across the vast Australian landscape. Indian companies can leverage this growth in eCommerce to increase exports of crafts, apparel, and other consumer goods to Australia.
- Shared Cultural Ties
India and Australia share strong cultural ties due to the presence of Indian immigrants in Australia. The sizable Indian diaspora drives demand for authentic Indian products in Australia. Their familiarity with Indian cuisine, traditions, and festivals results in a steady market for exports of ethnic foods, apparel, and lifestyle products from India.
- Favorable Regulations
Australia maintains transparent and predictable trade policies and regulations. It has also signed free trade agreements to boost two-way commerce. The regulatory environment makes it easier for Indian companies to understand the requirements for exporting various products and undertake trade with ease. Simplified processes attract greater participation of exporters.
What Does India Export Most To Australia
Here are a few product categories that are exported the most from India to Australia:
- Apparel and Clothing
Industry experts predict that as a result of the India- Australia Free Trade Agreement, textile and apparel exports from India will grow from $ 392 million to $1100 million in the coming three years (2024-2026).
- Precious Stones & Jewelry
Also known as the hallmark of Indian culture, Indian jewellery is a regular accessory on every indian. The extensive range of jewels and stones in the nation has caught the attention of not just people in the country but from across the globe, including Australia. Rare and unique gems, gold, or intricately designed imitation jewellery are a few types that never go wrong in consumer demand.
- Fashion & Footwear Leather
Did you know that leathered travel goods and fashion footwear were exported at USD 56 million in 2001 from USD 55 million in 2000? From purses to leather shoes and sandals, Australia imports all categories of leather fashion. Moreover, with a large number of sportspersons hailing from the country, there is also a huge demand for leather sports goods as well.
- Artifacts and Handicrafts
One of the most unique and authentic handicrafts markets is that of India’s, with indegeneous products grabbing a heritage place in the hearts of many around the world. From home decor to outdoor garden accessories, Indian products have gained popularity in Australian households and are exported to the country at very high prices.
- Pharmaceutical and healthcare products
India is known as the “pharmacy of the world.” By volume, India retains up to 20% share in global supply of generic medicines. It is also one of the world’s top distributors of affordable vaccines in the world. These high-quality pharmaceutical medications and medical supplies are parts of India’s common goods exports to Australia. A study in the United Nations COMTRADE database on international trade says that in 2023, India exported pharmaceutical products worth US$424.18 million to Australia.
- Electrical and electronics equipment
India excels in the production and supply of electrical equipment. It is the third-largest global supplier of electronics. According to a recent survey, India exported electrical equipment worth $491.12M in just 2023 to Australia. Furthermore, statistics by Volza Grow Global show that India exports about 83,110 shipments to Australia.
- Edible preparations (food items)
Another standard export from India to Australia is food items. They are goods that contain different edible preparations, including spices, teas, coffees, and other food condiments. Indian spices high in demand include turmeric, coriander, cumin, and chilies which are used widely in Australian cuisine. Regarding food and beverages, India’s exports to Australia are about USD 354.82 million, which is about 7% of Australia’s food imports.
How To Export To Australia From India
If you’re one of those businesses that are dealing with products most exported to Australian borders, it is crucial to know which is the best foot forward to start shipping to the country in discussion. Firstly, you could run a survey on customer behaviour towards your product niche, the capital required, the tariffs involved, and what would be the right option of cheapest shipping to australia.
Partnering with low cost, courier companies not only open up economy shipping pathways for first time global businesses, but also facilitate minimizing the hassles that come along with shipping. For example, a courier company like ShiprocketX requires minimal documentation such as IEC (Import Export Code) and AD (Authorized Dealer) Code to get products shipped to Australia, and also ensures your customs clearance procedure goes smoothly with the help of in-house CHAs. Being in the loop of what items are restricted and prohibited from shipping to the country also helps minimize risks of penalty issues. If you’re a brand looking for cheapest shipping to Australia, it’s always best to consult shipping solutions that offer shipping calculators to compare shipping costs.
Conclusion: Export To Australia Made Easy
Indian exports to Australia have considerably increased over the years, but the scope for development still exists. The governments of both countries are building efforts to expand Indian exports to Australia for it to reach its optimum potential. This is a golden opportunity for trading and exporting products to the island continent.
