Mumbai, Jan. 16: India and Australia will conduct a study to examine the prospects of a free trade agreement (FTA) between the two countries.

“We need to explore opportunities for a free trade agreement, which is comprehensive and supportive of multilateral principles,” Australian trade minister Simon Crean said here today.

An FTA will bring about a significant reduction in tariffs on goods traded between the two countries .

India has signed FTAs with Thailand and Sri Lanka and a comprehensive economic co-operation agreement with Singapore. It is also in the process of signing another FTA with Asean.

Australia’s exports to India have been rising at around 30 per cent annually, making India its fourth largest export market now. India’s imports from Australia grew 50.9 per cent to Rs 2,768.16 crore in 2007 from Rs 1,834.30 crore in 2006. Coal, gold and copper ores provided the boost.

Crean will meet industry minister Kamal Nath tomorrow and discuss areas where the two countries can work together to achieve a breakthrough in the Doha round of talks.