Business group have hailed the signing of an interim trade pact between Australia and India as a major milestone towards a full free trade agreement.
The deal, signed in a virtual meeting on Saturday, will see tariffs eliminated on more than 85 per cent of Australian goods exported to India, currently worth more than $12 billion a year.
Some 96 per cent of Indian goods entering Australia will also be made duty-free.
Business Council of Australia chief executive Jennifer Westacott said the deal was welcome progress towards a free trade agreement.
"This puts Australia in position to take advantage of one of the great untapped markets of the 21st century," she said in a statement.
Minerals Council of Australia chief executive Tania Constable said the deal marked an important milestone to deepening and developing trade and investment ties.
"The mining industry looks forward to further co-operation and economic integration as the two nations finalise the comprehensive agreement," she said.
Prime Minister Scott Morrison said many countries have tried to do business with India, but only Australia has been able to secure an agreement.
"We are opening the biggest door to one of the biggest economies in the world," he told reporters on Saturday.
Negotiations on the Australian-India economic co-operation and trade agreement had been ongoing for more than a decade.
Trade Minister Dan Tehan and his Indian counterpart Piyush Goyal signed off on the deal during Saturday's virtual meeting.
During the signing, Indian Prime Minister Narendra Modi credited former prime minister Tony Abbott's role in accelerating the deal as Mr Morrison's special trade envoy to India.
As part of the deal, tariffs on products such as sheep meat and wool will be eliminated immediately, while tariffs for products like avocados, onions, nuts and fruits will be phased out over the next seven years.
Tariffs on wine will also be reduced, while the resources sector will see tariffs on products like coal and metallic ores eliminated on entry.
In addition, the trade deal is set to benefit the education and tourism sectors.
The two countries will recognise each other's professional qualifications, licensing and registration procedures, while 1000 working holiday places will be set aside for Indian residents within two years as part of new measures.
Opposition Leader Anthony Albanese said while Labor was not consulted on the agreement, it was welcome.
Two-way trade between Australia and India is currently valued at more than $24 billion.
