Australia has unveiled an ambitious roadmap to enhance its economic ties with India, focusing on key sectors like agribusiness, clean energy, and education. This strategic initiative aims to capitalize on India’s rapid economic growth, bolster supply chains, and create job opportunities for both nations. Prime Minister Anthony Albanese launched the roadmap at an event in Melbourne, with Indian Ambassador Gopal Baglay in attendance.
Strengthening Trade Relations with India
The new roadmap seeks to deepen economic engagement between the two countries, aiming to boost trade and investment. India, now Australia’s fifth-largest trade partner, holds a crucial position in the global market. The roadmap identifies key areas where both countries can maximize their mutual potential and secure supply chains in a world marked by economic uncertainty.
Albanese highlighted India’s continuous growth, calling it a “giant” that provides endless opportunities. The roadmap will help Australia tap into these opportunities, which include sectors like defence industries, technology, space, and sports. He emphasized that there has never been a better time to engage with India economically, adding that the roadmap offers clear directions to strengthen bilateral relations.
Key Focus Areas for Growth
The roadmap outlines four “superhighways of growth” aimed at propelling economic cooperation between Australia and India. These include:
- Agribusiness
- Clean Energy
- Education
- Tourism
These sectors will play a pivotal role in driving job creation, economic growth, and broader trade expansion. In addition, the roadmap identifies nearly 50 specific opportunities for further collaboration between the two nations.
Economic Cooperation and Trade Agreement (ECTA)
Australia and India have already made significant strides in trade relations. The two countries signed the Economic Cooperation and Trade Agreement (ECTA) in 2022, an interim trade deal that has paved the way for further economic cooperation. Under ECTA, 96% of Indian exports to Australia are tariff-free, with plans to increase this to 100% by 2026. This agreement has contributed to a 41% growth in two-way trade, which increased from $22.2 billion in 2021 to $31.4 billion in 2022.
Impact of ECTA on Trade Growth
The ECTA has had a direct positive impact on Australia’s trade with India. Agricultural exports to India have surged by 146% since 2022, while iron and steel exports have grown by 189% between 2022 and 2024. Australian Prime Minister Albanese credited these achievements to the successful implementation of ECTA, and pointed out that this trade deal is on track to save exporters around $2 billion in tariffs by the end of 2024.
To accelerate the impact of the new roadmap, Australia will invest AUD 16 million into a trade and investment accelerator fund. Additionally, AUD 4 million will be allocated for the Maitri Grants program, designed to foster business-to-business links between Australia and India.
Plans for a Comprehensive Economic Cooperation Agreement (CECA)
Looking ahead, Australia and India are in the process of negotiating a Comprehensive Economic Cooperation Agreement (CECA), which will open new avenues for trade and investment. Australia’s trade minister Don Farrell emphasized India’s crucial role in the future of Australian trade. The proposed CECA will target opportunities in agriculture, critical minerals, space exploration, green hydrogen, and advanced technologies.
A Strategic Partnership for the Indo-Pacific
Australia’s Foreign Minister, Penny Wong, welcomed the roadmap, stating that it would advance the shared interests of both countries in maintaining a peaceful, stable, and prosperous Indo-Pacific region. She underscored the importance of strengthening defense and diplomatic ties to support the rules and principles that ensure security in the region.
A Bright Future for Australia-India Relations
As Australia and India move forward with this ambitious roadmap, the future looks promising for both nations. The partnership is set to generate growth, create job opportunities, and provide stability to their supply chains. By focusing on high-potential sectors and building on their existing agreements, Australia and India are well-positioned to realize their full economic potential.
