Tarrifs on almost 90 per cent of Australian goods into India have been slashed to zero while taxes on other goods from baby formula to pharmaceuticals will be phased down within 6 years.
The former Chair of Australia India Business Council Sheba Nandkeolyar says it a step forward for relations between the two nations.
"This is the ECTA which is Australia and India signed an Economic Co-operation and Trade Agreement which is kind of a steppting stone to the bigger piece of the FDA, but a really significant agreement, because it kind of really ups that relationship to a whole new level which we've been striving for almost now a decade and a half."
Talks that stalled between then-Prime Minister Tony Abbott and Indian's Prime Minister Narendra Modi in 2015, were revived last month as Australia and India signed an Economic Co-operation and Trade Agreement.
The deal is also seeking to address critical skill shortages with the Australian government offering Indian students who finish uni here, post-study work, with a bonus year for those who excel in STEM subjects.
The deal will also see tariffs on Australian wine dramatically slashed.
Welcome reprieve for the industry, which has lost 2 billion dollars to sanctions imposed by China.
Smoothing out that trade relationship, remains a high priority with Australia's Trade Minister Don Farrell hoping to visit Beijing in the new year saying the decision is up to China.
"As I've said I have made it very clear that we are happy to meet at any time, at any place, and we'll just see what the response by the Chinese government is to that."
The Prime Minister Anthony Albanese is also hoping to go to Beijing next year for a second meeting with president Xi Jing Ping but says nothing is planned just yet.
