Australia and India are natural economic partners and have a strong and growing trade and investment relationship. The Australian Government is committed to taking Australia’s relationship with India to a higher level.

Simon Crean, MP
Australian Minister for Trade

This is why I paid an early visit to India in January 2008 to take our economic links with India forward. I saw for myself the economic forces driving change in India and powering trade and investment links between our two countries.

I was pleased to host a visit by my counterpart, the Indian Minister for Commerce and Industry, Kamal Nath, in May 2008. We explored further areas of economic collaboration, decided to establish an Australia-India CEOs forum and underlined the need to continue to work together to open up market access.

Australia has now completed the process to allow Indian mangoes into the Australian market. This demonstrates our commitment to working with India to resolve bilateral trade issues.

India has consolidated its position as one of Australia’s most significant economic partners – the total goods and services trade was 13.3 billion in 2007. India is Australia’s sixth largest merchandise export market. Australia’s exports of gold, coal, copper, wool, education services, and construction and industrial services form key inputs for Indian export, business and infrastructure requirements. They are helping to sustain India’s economic growth.

While resources form the bedock of the trading relationship, commercial links are expanding into many areas such as biotechnology and communications. Trade in services is an increasingly critical part of the bilateral relationship. Australian education institutions have a lot to offer Indian students. Australia is now the second most popular destination for Indians seeking an overseas education. Tourism links between Australia and India are also growing quickly.

There is a new realisation of the opportunities we offer each other. Indian and Australian investors are beginning to seize opportunities in each other’s markets. Recent examples of Indian investment in Australia include Satyam’s partnership with Deakin University for a software development and learning centre. Tata Power’s investment in clean coal technology company Exergen; and Gujarat NRE’s acquisition of Elouera Colliery, its third Australian coal mine.

Australian companies are keenly interested in India, underlined by over $2 billion in total foreign and institutional investment in 2006. This investment covers manufacturing, telecommunications, hotels minerals procession, food processing, oil and gas, and the automotive sector. We are also strengthening our science and technology research links, underpinned by the Australia-India Strategic Research Fund. This will expand opportunities for investment and growth in cutting edge fields of endeavour in both countries.