By Ambassador Anil Wadhwa
On August 19-22, the chief trade negotiators of India and Australia will hold the tenth round of discussions to expand and deepen the areas of agreement in the landmark bilateral Comprehensive Free Trade Agreement signed in 2022.
The trade agreement highlights Australia as one of India’s most promising partnerships, top among a number of trusted countries with which India has, over the past few years, moved with resolve to enhance relations. Quietly, and almost unnoticed, the Australia-India strategic engagement has grown, and holds increasing importance for the changing geopolitical landscape by bringing more stability and prosperity to the Indo-Pacific region and beyond.
For long, the two countries knew each other through people-to-people ties. A century ago, there were 2,000 Indians in Australia[1], mostly traders and labourers. Today, the Indian community in Australia is nearly 1 million[2] strong and continues to grow in importance, while the Indian student population was well over 100,000 as of September 2023.
Now they are getting to know each other through comprehensive economic collaborations. Australia and India are focused on quick progress in defence and security, education and research, technology and innovation and upgrading people-to-people ties. New areas of cooperation include critical minerals, migration and mobility, hydrogen and solar collaboration and even an education qualification-recognition mechanism – all significant developments. As a result, the two countries are poised for a greater exchange of talent and crossflow of ideas and innovation.
As per the latest figures from Australia’s Department of Foreign Affairs and Trade (DFAT), bilateral trade in goods and services reached $32.7 billion: Australian exports went up to $23.5 billion, and imports from India hit $9.2 billion.[3]
Australia has invested $18 billion into India, and India has invested $32.1 billion into the Australian economy. Agreements reached in maritime collaboration, defence science exchanges, mutual logistics support, cyber-enabled technology and strategic minerals are now ripe for commercial success.
The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA), has lived up to its promise in its initial year of implementation, and both sides are dedicated to crossing the finish line with the full-fledged Comprehensive Economic Cooperation Agreement (CECA) that is expected to be concluded later this year. The CECA will foster even greater trade and investment – making India-Australia a model for other contemporary trade agreements
Outside of trade, India and Australia are collaborating in futuristic areas that have wide scope for their respective corporate sectors. Defence R&D and manufacturing have emerged as a focus area. Advanced sensors, underwater technologies, quantum computing and cryptography, laser and hypersonic technologies and collaboration between Indian shipyards and Australia’s shipbuilding industry is needed. A joint working group on defence research and material cooperation has already been set up but needs to meet more frequently.
The Australian Space Agency and the Indian Space Research Organization have recognized each other’s capabilities in areas such as technologies related to the remote sensing of the earth, satellite communication, satellite-based navigation and ground stations to support space activities. With the opening of the space sector to private players, low-orbit satellites and spacecraft and systems engineering are low-hanging fruit that can be exploited by Australians and Indians working together.
Besides their bilateral trade partnership and recognition of a commonality of commercial interests, Australia and India share the goal of establishing reliable supply chains and promoting the rule of law. The trilateral cooperation between Australia, India and Japan through the Resilient Supply Chains Initiative (SCRI), signed in April 2021, will be regionally beneficial if they concentrate on digital trade and critical minerals – areas in which all three have strengths. This single step will facilitate seamless trade and bring down costs – a key area of concern for the three partners.
Through participation in the Quad, Australia and India continue to address key challenges in the Indo-Pacific such as rapidly changing technology, the grave threat of climate change and the development of clean energy sources. The annual Malabar naval exercises – which Australia and India conduct with the U.S. and Japan – enhance interoperability and help safeguard a free, open Indo-Pacific and freedom of navigation on the high seas, achievements that at this juncture are well on track to grow even stronger.