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The Australian Parliament has ratified the Economic Cooperation and Trade Agreement (ECTA) with India, paving the way for implementing the deal as early as January 1, 2023.The deal will now need approval from the Australian Cabinet and the President of India.
This agreement as and when implemented would help reduce custom duty on coking coal, a key raw material for steel making, thus benefiting the Indian Steel sector. Post agreement with Australia, steel exports to Australia will become duty free; while coking coal imports are also likely to benefit. This step augurs well for domestic steel companies as it would aid them to reduce the cost of production. Australia accounted for ~ 67.5% of India's coking coal imports during January to September this year. India was the top importer of Australian coking coal at 45 Million tonnes during CY 2021.
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