From humble roots, two men find Common Ground
Dr Pradeep Taneja
Judging by their jocular demeanour in Bali, the Australian and Indian prime ministers have already developed a good rapport with one another, paving the way for strategic cooperation in the Indo-Pacific region.
When Anthony Albanese and Narendra Modi met in Bali this week, it was their third meeting as prime ministers. They first met in Japan in May this year at the Quad Leaders’ Summit within hours of Mr Albanese being sworn in as prime minister and, again, in Tokyo in September at the former Prime Minister Shinzo Abe’s funeral. Coming from working class backgrounds, both men tell compelling stories of struggle and hardship on their way to pinnacles of power in their homelands. But similarities end there. While Prime Minister Albanese is a man of Hard Left, Prime Minister Modi built his political career in the service of a right-wing Hindu nationalist organisation until his elevation as the Chief Minister of his home state of Gujarat in 2001, and election as Prime Minister of India in 2014.
Regardless of their contrasting ideological upbringing, the two men find themselves stewarding a bilateral relationship that has never been stronger or more important for regional stability and prosperity. Judging by their jocular demeanour in Bali, they have already developed a good rapport with one other. Regular dialogue between the leaders of Australia and India is conducive to promoting the Comprehensive Strategic Partnership between the two countries that was established in June 2020, under former prime minister Scott Morrison. Such regular contact will not only help both sides to develop a better understanding of each other’s views on regional and global issues, for example, the war in Ukraine and China’s increasing assertiveness, but also contribute to stronger bilateral relations.
The Australia-India relationship has undergone transformational change since 2014, when Mr Modi became the first Indian prime minister to visit Australia in nearly three decades. Often derided as being confined to ‘Commonwealth, cricket and curry’ in the past, the bilateral relationship today covers a whole gamut of issues and there is hardly any area of regional or global interest where the two countries do not consult one other. That does not, of course, mean they agree on everything; there are areas where their respective positions differ markedly, be it on climate change mitigation measures or LGBTQ and minority rights.
The important thing to note is that there are many areas of shared interests and values than differences. Unlike Australia’s economic and trade relations with other Asian powers such as China or Japan, the Australia-India trade relationship is relatively underdone. According to Australia’s Department of Foreign Affairs and Trade, Australia exported A$19.3 billion worth of goods to India in 2021, which was just 4.2 per cent of Australia’s total exports. But the pace of growth in bilateral trade is accelerating and is likely to scale new heights in the next decade.
The conclusion of the interim trade agreement in April this year was a significant step forward in bilateral relations. It required political will on both sides to reach this agreement. The comprehensive final agreement that Mr Albanese wants to sign during his forthcoming visit to India is, however, going to be much harder as both sides are likely to push for greater concessions. India will continue to push for further opening of the Australian labour market for skilled and highly educated Indian workers, while Australia will seek greater access for Australian agricultural produce, including dairy products. Having said that, as both sides now regard the relationship as important to their strategic interests, we might see the two political leaders ask their negotiators to be more flexible in trade negotiations.
Mr Albanese has said that he will be leading a business delegation to India in March 2023. We are likely to see a combination of extractive and agricultural industries representatives and senior executives from the services sector, including banking, IT and education accompanying the prime minister to India. The favourable political atmosphere that currently prevails between the two countries should make it easier for Australian companies to do deals with their Indian counterparts. There are clearly many complementarities between the two economies and the prospects for economic cooperation look bright.
One of the biggest changes in the bilateral relationship over the past decade has been the permanent migration of tens of thousands of Indians to Australia. While the Covid-19 pandemic has stemmed this flow somewhat, the Indian diaspora in Australia is among the most vibrant, dynamic and well-educated communities in Australia. A closer political relationship between the two countries is always going to be good for the Indian diaspora. It would create more opportunities for Australian-Indians to explore business opportunities in India. As the fastest growing major economy in the world, India presents attractive business opportunities for those who are able to negotiate the country’s sometimes complex administrative and regulatory systems. Who is better equipped to open doors for Australian businesses in India than Australians of Indian origin?
Prime Ministers Albanese and Modi are likely to meet each other several times in 2023. As the international environment becomes more challenging over the next few years, Australia and India will need to coordinate their actions more closely as China pursues more assertive geopolitical and geo-economic strategies in the Indo-Pacific region.