The first round of tariff cuts took place on December 29, and a second tranche came into effect on January 1.
It gives Australian businesses greater access to India’s 1.4 billion people-strong market just ahead of the new year.
More than 85 per cent of exports to India — including wool, meat, barley, lobsters, cosmetics and critical minerals — had tariffs entirely cut from December 29.
Tariffs on a further five per cent of goods will be tapered down to zero over the next six years.
Australian tourism is also set for a boost, with 1000 work and holiday program places available to young Indian travellers.
Federal Trade Minister Don Farrell said the two nations were natural trading partners.
“This agreement will unlock the enormous potential in our trading relationship,” Mr Farrell said.
He said the agreement would help diversify exports and strengthen the bilateral relationship.
Indian Commerce and Industry Minister Shri Piyush Goyal said the agreement would unlock “a whole new world of opportunities for both countries”.
“It will usher in a new era in our bilateral economic relations,” he said.
“(It) reflects the deep friendship, shared vision and the trust between the two countries.
“(It) is a mutually beneficial partnership unlocking strong multiplier benefits across various sectors by providing jobs in both countries, expanding economic activities and enhanced consumers’ choices.”
A free trade agreement with the United Kingdom has also been ratified by Australia and is awaiting the UK’s parliamentary process to come into effect early this year.
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