India and Australia have finally agreed to take a view on the possibility of a free trade agreement (FTA) between both the countries.

Australian Trade Minister Warren Truss said that the first step forward to establish trade relation with India is the natural result of India’s rising economic strength at global level.

Truss further said that the bilateral trade and investment have achieved remarkable mark between the two countries.

Now, both the countries have been agreed on the joint feasibility study to know the potential benefits of a having free trade agreement (FTA).

Truss said:

The FTA feasibility study is a natural extension of the Australian government’s efforts to look at ways to tap the potential of India’s rise as a major economic power.

According to him, India’s middle class will particularly present important opportunities for Australian business. India also stands to benefit from Australia’s significant economic strength and competencies.

According to the report, Australia’s two-way trade in goods with India has been reached $9.3 billion in 2006-07. The figure of bilateral trade has made India as Australia’s 9th largest trading partner. Truss said that India has emerged as one of the key players for global economic development. India’s sustainable economic development will be progressively more significant to world economic development.

Now, both the countries have decided to take the first step towards creating FTA in bilateral trade and for that the feasibility study would take a view on the possibility of the FTA. The study would start in late 2007 and will be possibly completed in 2009.

The feasibility study would observe and scrutinize the potential impact of an FTA on encouraging economic growth, trade in goods and services, investment and other commercial linkages between both the countries.

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