Context:
Australia expressed continuing faith in the economic ascent of India, backing its aim to become the third largest global economy by 2030, and supporting India’s permanent membership in the United Nations Security Council. Recently, Prime Minister Anthony Albanese of Australia announced the New Roadmap for Australia Economic Engagement with India to expand cooperation in various sectors ranging from trade to investment to geostrategic partnership.
Trade Surge between India and Australia
- The export markets of India grew by 35% over the last five years, while exports to Australia surged by 66%, the latter nearly double the speed showing complementary economic strengths.
- The trade between the two nations has experienced a fillip largely due to the Economic Cooperation and Trade Agreement (ECTA).
Focus Areas under the Roadmap
The roadmap identified four “Superhighways of Growth”:
- Clean Energy
- Australia stands at the forefront as a producer of lithium, nickel, and cobalt and thus will be the fountain of India’s green transition and EV manufacturing goals.
- Education & Skills
- Australian universities are exporting to India (GIFT City, Noida) to skill 20 million Indians every year.
- Agribusiness
- Food security and trade enhancement through sustainable agriculture solutions.
- Tourism
- Enhance cultural ties and promote travel between two nation states.
The other visible path of prosperity will come alive through the seven ‘Major Economic Roads’ including investments, technology, sports, arts & culture, resources, defence, space, and health.
Harnessing the Indian Diaspora
People to people ties are at an all time high with the 1 million strong Indian diaspora, the fastest growing population group in Australia.
Australia is investing ₹132 crore in the Centre for Australia India Relations and ₹22 crore in the Maitri grants program to further strengthen this ‘human bridge’ between the two nations.
Going Forward: CECA
- As enterprises seek new opportunities for investment and trade, progress on the CECA will therefore be critical to expanding market access and deepening economic collaboration.
Implications
The New Roadmap indicates Australia’s long term commitment to enhancing India’s economic strength, putting forth a clear, structured approach to an intensified partnership.
