Almost 10 years in taking shape, India and Australia inked a landmark economic agreement on Saturday, which will see duties being sliced on over 85% of products traded toward the South Asian country as the two states secure alternative supply chains and counter a decisive China.

"The trade pact truly is a watershed moment for our relations," PM Modi said after inking the interim agreement. A closer commitment between the two Quad alliance partners comes even as Australia, alongside Japan and the U.S., pushing India to take a more grounded stand on Russia's invasion of Ukraine. The free trade deal is supposed to assist India to forge deeper ties with the raw-material rich country(Australia) as it(India) looks to turn into a manufacturing centre to resuscitate the pandemic-hit economy.

For Australia, the trade deal would open doors for a market of over 1.4 billion people, as it grapples with China’s trade curbs on a range of commodities exports. "The trade pact signed with India will further deepen our close ties," said Australian PM Scott Morrison.

The marking of the agreement comes in front of a public political race in Australia, with Morrison's centre-right government pushing a story of solid monetary administration as it battles to make up ground in assessments of public sentiment.

This is the subsequent significant economic deal that the Modi government has marked so far after sealing a similar deal with the UAE early during the year.

Australia is among India’s top 15 trading partners with a total trade valued at around $20 billion between the two nations in the year ending March 31, according to Indian government data.

The agreement, which has been almost a decade in the making, will give more prominent market access and slice duties on a scope of products including, sheep meat, fleece, wine, coal, alumina and metallic minerals, sold by Australia in India.

India has additionally consented to diminish duties on Australian wine. Duties on shipments with a base import cost of $5 per container will be decreased to 100% from 150% while obligation on bottles costing $15 is being sliced to 75%.