Indo - Australia Trade Relation
India Australia trade relations can be traced back to when the first Australian ship laden with coal came to India in 1801 as a part of the East India Company. India Australia trade relations are active today but their full potential has still not been achieved. There is considerable scope for development in India Australia trade relations.
The India Australia trade turnover between the two countries reached a record A$ 7.25 billion in 20042005. The amount of total trade saw an increase of about 23.7% or A$ 1.39 billion over the corresponding figure of A$ 5.86 billion in 20032004. In 2004- 2005, India's export to Australia was at A$ 1.22 billion or increased by 22% than the corresponding figure of A$ 999.7 billion in 2003- 2004. In 2003- 2004,
India's import figure stood at A$ 4.87 billion and it increased by 24% in the next year to stand at A$ 6.05 billion. India ranked sixth in Australia's export market in the year 2004- 2005. During this period, India's share of Australia's total export was 4.8% and import was 0.8%. The major items in India Australia trade which Australia exports to India are as follows: •Gold
•Copper and copper ores
•Wool
•Vegetables
•Silver and platinum
•Telecommunication equipment
•Electronic components The major items in India Australia trade which Australia imports from India are as follows:
•Precious and semi precious
•stones
•Floor coverings
•Textile
•Agricultural products
• Leather and leather goods
Through the setting up of the Joint Ministerial Commission (JMC) and Joint Business Council (JBC) efforts have been made to promote India Australia trade relations. Some of the major Indian investments in Australia include that by Sterlite Industries which has acquired a gold mine in Queensland and two copper mines in Tasmania. India's Oswal group has decided to construct an ammonia plant at Karratha which is close to North-West Shelf project in western Australia. The hotel Windsor in Melbourne is managed by the Oberoi Hotels International. Asian paints has acquired Pacific Paints in Queensland. The Aditya Birla Group has acquired copper mines at Mt Gordon (Queensland) and at Nifty ( Western Australia). Around 100 Australian companies have set up offices in India which has given a major boost to India Australia
trade relations. Some of the important ones are TNT express (courier services), Rio Tinto (mining), Telstra (telecommunications), Snowy Mountain Engineering Corporation (infrastructure development), Argyle diamonds (technical support office for diamond sales ), BHP Billiton (mining), ANZ (IT), and Fosters (brewery).
India Australia trade relations have come a long way but still there is room for more improvement which will prove beneficial for both the countries.
Australia’s Trade with India
India and Australia have a strong and productive bilateral partnership. Underpinned by trade and investment, the scope of Australia’s relationship with India has increased in line with India’s rapid economic and strategic growth.
Australian exports to India are on the rise, India is now Australia’s 4th biggest export market underlining the importance of India as a major export and investment destination for Australia. Merchandise exports to India grew from 7.3 $A Billion in 2005-06 to 10.1 $A Billion in 200607, registering a 36.8% increase. Australia’s leading merchandise exports include Coal, Gold, Copper Ore, Wool, Horticulture, etc. This makes India the fastest growing export market for Australia. India accounts for 6% of Australia’s Merchandise exports in 2006-2007 up from 4.84 % in 2005-2006
Services exports to India have also been growing rapidly with education leading from the front. Australia is now the 2nd biggest overseas education destination for Indian students. Indian tourist arrivals have also been on the rise contributing to Australia’s services exports to India.
Australia offers all the services required to complement India’s economic rise in sectors like education, tourism, financial services and insurance and a host of other professional skills. In the mining sector, Australia’s exports include the minerals and fuels, energy investment and collaboration on areas of joint significance.
In Information and communications technology, India's globallyrenowned industry is growing ever-stronger and there are solid linkages with Australia’s ICT capabilities.
As a young country that enjoys a vibrant lifestyle, Australia features many innovative businesses offering products and services ranging from wines to fashion to consumer electronics to leisure to cater to a young population & discerning consumers.
Australian expertise is available in a wide range of sectors that can complement Indian industry’s needs & requirments. Australia can be a very significant value added partner for Indian businesses in their growth & expansion paths by providing competitive solutions and expertise both in traditional & emerging sectors for Indian businesses.
The Australian Trade Commission has been playing a very significant role in developing Australia – India business & commercial relationships. With presence in 10 locations in India and an on-the-ground network of industry specialists, Austrade assisted over 525 Indian companies’ access Australian technologies, products and expertise as well as seek Australian investments and partnerships
The Australian Trade Commission has embarked a very focused sector specific strategy to offer Australian technology, expertise & solutions for Indian businesses in the areas of Resources, Mining & Energy; Infrastructure; Building & Construction; Food & Beverage; Agri Business; ICT; Film, Media & Entertainment; Retail; Financial Services”
The Australian Trade Commission offers services for Indian businesses in identifying potential Australian business partners; sourcing Australian technology, products, services & expertise and in identifying Australian joint venture partners & investors.
Australia Wants to Boost Economic Ties With India
Australia's new India economic strategy shows how India's growing economic weight makes it an unavoidable economic partner, despite the challenges in navigating its market.
As the United States places emphasis on the “Indo-Pacific”—a term echoed by Japan, India, Australia, and others—the framework of the “Quad,” a consultation involving these four democracies in the region, has come to the fore. Australia-India ties are weaker than the bilateral ties between other Quad countries, so this is a relationship that has ample room to grow.
In the Australian government’s foreign policy white paper released last year, the Indo-Pacific region featured prominently, along with a clear statement about the importance of expanding economic ties with a rising India. Today, after more than a year in preparation, Australian Prime Minister Malcolm Turnbull released his government’s new India economic strategy. At 514 pages, and packed with detailed analyses, this report will become a reference point for the coming years.
Australia’s interest in developing a stronger economic relationship with India comes at a time when Australia is increasingly aware of its economic exposure—and potential vulnerability—to China. It also comes at a time when the Australian government acknowledges the need to “catch up,” so to speak, in India. Former Secretary of the Department of Foreign Affairs and Trade (and former High Commissioner to India) Peter Varghese, now chancellor of the
University of Queensland and the lead on this immense undertaking, notes in his introduction to the strategy: Timing has always been a challenge in Australia’s relationship with India…. Today the risk is that we are not moving fast enough and Australia might fall behind as other countries accord India a higher priority….We cannot afford to lose momentum or to assume that the logic of complementary interests will be enough to take the economic relationship to the level it needs to rise.
The report contains ninety recommendations toward its “ambitious India strategy” of drawing India into Australia’s inner circle by 2035. Specifically, the strategy seeks “to lift India into our top three export markets, to make India the third largest destination in Asia for Australian outward investment, and to bring India into the inner circle of
Australia’s strategic partnerships, and with people to people ties as close as any in Asia.” These recommendations cover ten sectors: education, mining and natural resources, agribusiness, tourism, energy, health, infrastructure, financial services, sport, and science and technology. I was interested to see that the ninety recommendations pay significant attention to higher education, the very first of the sectors prioritized. The first immediate-implementation recommendation advocates setting up an Australian higher-education hub in India. The second urges an Australian consortium to partner with a new Indian Institute of Technology. And a major recommendation for implementation over a longer period seeks greater partnership with industry to support more “India literacy” in Australian universities. This all makes a lot of sense given the importance of Australian higher education to its economy—its thirdlargest export.
I was also intrigued by the recommendation that Australia should take the lead in supporting Indian membership in the AsiaPacific Economic Cooperation (APEC) forum. This smart strategic approach would position Australia as a champion of a long-standing Indian ambition, and—as the strategy notes— would also position India to be part of a potential free trade agreement across the APEC region if one ever came into being.
This economic strategy not only contains an excellent overview of the Indian economy and its position in Asia, but also reflects how India’s growing economic heft makes it an important partner for any country even as India’s market remains challenging. Have a look.