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Coalition’s migration plan risks breaching India free trade agreement and damaging economy, advocates warn

The Guardian October 06, 2026 2 views
Coalition’s migration plan risks breaching India free trade agreement and damaging economy, advocates warn

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On Tuesday the Australian Coalition government unveiled a migration plan that would slash net overseas migration to 100,000 for the first two years of its term, rising to 160,000 in the fourth year. The package, announced by immigration minister Angus Taylor, includes the abolition of temporary graduate visas, sharp reductions to international student, bridging and temporary protection visas, and a halving of humanitarian places.

The plan has drawn warnings from trade advocates who say it could breach the free‑trade agreement with India that was signed by the former Morrison government. The agreement obliges Australia to allow Indian students to remain and work in the country for up to four years after completing their studies, a provision that would be undermined by the proposed removal of graduate visas.

Universities Australia, the peak body representing the nation’s higher‑education sector, cautioned that the changes would make Australia “less competitive” in attracting overseas talent. The body highlighted the importance of graduate visas in retaining skilled graduates who contribute to research, innovation and the broader economy.

Advocates for the Indian student cohort argue that the migration overhaul could damage Australia’s economy by curtailing a key source of skilled labour and tuition revenue. They note that Indian students constitute a significant proportion of the international enrolment market, and the ability to stay and work after graduation has been a major draw.

While the Coalition frames the cuts as a means to manage population growth, critics stress that breaching the India free‑trade agreement could invite diplomatic friction and undermine the economic benefits derived from the bilateral education partnership.

<small>Source: The Guardian — read the original story there.</small>

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