New Roadmap for Growth: Australia-India Trade and Strategic Engagement

Context

The Australia-India relationship has evolved into a strategic and economic partnership, driven by shared interests, historical ties, and geopolitical considerations. As India emerges as a major global power, Australia has shown strong confidence in its economic trajectory.

• Geopolitical Importance: India’s rise aligns with Australia’s Indo-Pacific strategy, ensuring regional stability and economic growth.
• Economic Significance: Australia sees India as a key trading partner with immense potential, particularly in energy, education, agribusiness, and technology.
• Strategic Alignment: Both nations cooperate on regional security, trade, and multilateral forums like the Quad and G20.

Australia’s New Roadmap for Economic Engagement with India marks a new phase of collaboration, focusing on trade expansion, investment, and skill development.

Australia’s Confidence in India’s Economic Growth

Australia considers India a rising global economic power, predicting that it will become the world’s third-largest economy by 2030. This confidence is based on:

• Rapid Economic Growth: India’s GDP growth rate consistently exceeds 6%, making it one of the fastest-growing major economies.
• Expanding Global Influence: India’s role in G20, BRICS, and QUAD strengthens its economic and diplomatic standing.
• Strategic Resources & Markets:
  • Australia supplies critical minerals (lithium, nickel, cobalt) vital for India’s industrial growth.
  • India provides a vast market for Australian goods, services, and education.

Australia also supports India’s bid for a permanent seat on the United Nations Security Council (UNSC), recognizing its growing global stature.

Australia’s Economic Engagement with India

New Roadmap for Economic Engagement

To deepen economic cooperation, Australian Prime Minister Anthony Albanese launched a strategic roadmap that builds on the progress made since 2018. Key elements include:

• Economic Cooperation and Trade Agreement (ECTA):

  • Signed in 2022, it has significantly increased bilateral trade.
  • India’s exports to Australia have grown by 66%, compared to 35% global export growth.

• Four Priority Sectors (‘Superhighways of Growth’):

  1. Clean Energy – Australia provides key resources for India’s renewable energy and EV sectors.
  2. Education & Skills – Australian universities are expanding into GIFT City and Noida to train India’s workforce.
  3. Agribusiness – Strengthening food security and agricultural trade.
  4. Tourism – Promoting cultural and business travel between the two nations.

• Seven Additional ‘Major Economic Roads’ for Collaboration:

  • Investment, Technology, Sports, Culture & Arts, Resources, Defence, Space & Health.

Addressing India’s Skill Development Needs

India faces a major challenge of skilling 20 million people annually to meet the demands of its growing economy. Australia is playing a key role in addressing this challenge by:

• Setting up Australian university campuses in India, including in GIFT City and Noida, with more planned.
• Providing vocational training in key industries, such as manufacturing, technology, and renewable energy.
• Enhancing workforce readiness to support India’s economic expansion and Make in India initiative.

By partnering with India’s education and skill development programs, Australia is helping build a future-ready workforce.

The Role of the Indian Diaspora in Strengthening Bilateral Ties

The Indian diaspora in Australia plays a crucial role in economic and cultural engagement. Key contributions include:

• Over 1 million (10 lakh) Indians live in Australia, forming a strong economic and cultural bridge.
• Indian-Australians hold leadership positions, influencing policy and trade relations.
• Government Initiatives to Strengthen Diaspora Ties:
  • ₹22 crore Maitri Grants Program to promote cultural and economic engagement.
  • ₹132 crore Centre for Australia-India Relations to enhance bilateral cooperation.

The diaspora serves as a connective link between both nations, fostering business, education, and diplomatic relations.

The Path Ahead: Comprehensive Economic Cooperation Agreement (CECA)

Building on the success of ECTA, India and Australia are now negotiating a Comprehensive Economic Cooperation Agreement (CECA) to:

• Further reduce trade barriers and enhance market access.
• Encourage investment in technology, healthcare, and innovation.
• Strengthen supply chains to improve economic resilience.

This agreement is expected to unlock new economic opportunities and deepen long-term cooperation.

Conclusion

Australia’s growing confidence in India’s economic rise is evident in its trade agreements, investments, and strategic collaboration. The New Roadmap for Economic Engagement provides a clear framework for strengthening ties in trade, education, clean energy, and skill development.

As Australian Prime Minister Anthony Albanese stated, the Australia-India partnership is now "stronger, deeper, and more consequential than ever before."

With the right policies and initiatives, this partnership is set to achieve new milestones in the coming years, benefitting both nations.