Published on 27 Jan 2025
The India-Australia bilateral relationship is underpinned by shared values of pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic engagement and increasing high level interaction. The longstanding people-to-people ties, ever increasing Indian students coming to Australia for higher education, growing tourism, and sporting links, especially Cricket and Hockey, have played a significant role in further strengthening bilateral relations between the two countries.
Areas of Cooperation
✔ Geopolitical
● Multilateral Ties: India and Australia are both part of various international groups, such as the Quad, Commonwealth, IORA, and have engaged in the East Asia Summits.
● UN Security Council Support: Australia backs India's UN Security Council expansion bid.
● Economic Collaboration: Australia plays a role in APEC and supports India's membership.
● China Factor: India, like Australia, has faced tensions with China due to analogous issues, including concerns about national security like banning Huawei from 5G networks.
o Example: Both countries have also called for a transparent inquiry into the origins of COVID-19 and raised objections against human rights abuses in regions like Xinjiang and Hong Kong.
✔ Political
● Historical Milestones: The relationship's strategic importance grew with the Australia-India Civil Nuclear Agreement and Prime Minister Modi's 2014 visit.
o Example: In 2020, both nations elevated their partnership to a Comprehensive Strategic Partnership.
● Common interest: Both nations share similar interest in terms of national interest, security etc.
o Example: India and Australia jointly seek a rule-based Indo-Pacific and support open seas.
✔ Security
● Defense Agreements: Both nations have signed agreement for military and security cooperation.
o Example: The Mutual Logistics Support Agreement (MLSA) enhances logistics access and joint exercises. The first India-Australia 2+2 Ministerial Dialogue occurred in September 2021.
● Joint Drills: Both countries conduct bilateral and multilateral military exercises,
o Example: AUSINDEX and Malabar Exercise.
● Maritime Security: A maritime cooperation agreement focusing on Maritime Domain Awareness is in progress.
o Example: Australia posted a Liaison Officer at India's IFC-IOR in Gurugram.
✔ Economic
● Bilateral Trade Volume: Bilateral trade in goods and services between the two countries reached USD 27.5 billion in 2021.
o Example: Australia is India's 17th largest trading partner, while India is Australia's 9th largest partner in terms of trade.
● Key Exports and Imports: India's primary exports to Australia include refined petroleum and medicaments, while major imports consist of coal, copper ores, gold, and education-related services.
● Investment in Minerals: India and Australia have committed to jointly invest in exploring lithium and cobalt mines in Australia, essential for India's electric vehicle plans.
● CEO Forum: The India-Australia CEO Forum, established in 2011, serves as a platform for businesses from both nations to discuss ways to enhance the trade and investment relationship.
● Supply Chain Diversification: Both countries aim to collaborate to diversify supply chains for critical health, technology, and other goods and services.
o Example: They welcomed the launch of the Supply Chain Resilience Initiative
✔ Science
● Research: The Australia-India Strategic Research Fund, initiated in 2006, facilitates research partnerships between Indian and Australian scientists, promoting innovative research.
● Environmental Partnership: Australia is engaged in India's Clean Ganga Project, focusing on improving the Ganges River's environmental conditions, as agreed during the visit of India's Prime Minister.
✔ Social
● People-to-People Ties: India is a major source of skilled immigrants for Australia.
o Example: With roughly 976,000 individuals of Indian origin, based on the 2021 Census, constituting the second-largest group of foreign-born residents in Australia.
|
India-Australia Economic Cooperation and Trade Agreement (IA-ECTA)
This agreement is the third of its kind for India with an OECD country, after Japan and South Korea. It is expected to boost bilateral trade to USD 45-50 billion over five years, generating over one million jobs in India. It will also change perceptions about India's trade policies. ✔ Tariff Reductions: The agreement grants zero-duty access for 96% of India's exports to Australia and 85% of Australia's exports to the Indian market, with phased concessions for the rest. It significantly reduces India's 150% duty on Australian wines over ten years. ✔ Industry Benefits: India's labor-intensive sectors like textiles, gems and jewelry, leather, and footwear gain from duty-free access. Australia's raw material exports will make Indian industries more competitive, particularly in sectors like steel, aluminum, and engineering. ✔ Visa and Education: The agreement includes extended post-study work visas for Indian STEM graduates and a program for young Indians to pursue working holidays in Australia. ✔ Future Negotiations: The two countries plan to negotiate a Comprehensive Economic Cooperation Agreement (CECA) to further deepen economic ties.
|
Challenges in India-Australia Relations
✔ Violence against Indian Diaspora: Incidents of attacks on the Indian Diaspora and temples by Khalistan supporters have posed security issues and strained the relationship.
✔ Adani Coal Mine Dispute: Controversy surrounding the Adani coal mine project in Australia, including protests by activists, has strained bilateral ties.
✔ Visa Issues: Concerns about visa restrictions affecting Indian students and professionals seeking opportunities in Australia have emerged as a challenge.
Way Forward
✔ Investment Protection: Consider integrating investment protection provisions within the Comprehensive Economic Cooperation Agreement (CECA) to bolster the trade agreement.
✔ Addressing Market Challenges: Acknowledge market challenges in Australia, including intense competition due to various operational FTAs, and focus on enhancing India's competitiveness.
✔ APEC Membership Pursuit: Actively seek membership in the Asia-Pacific Economic Cooperation (APEC) to bolster India's role in global governance.
PM Modi described the relationship between India and Australia by various acronyms namely 3 Cs- commonwealth, cricket, and curry, 3 Ds- diaspora, democracy, and dosti, and 3 Es- economy, energy, and education. This partnership built on common values and shared goals in the Indo-Pacific, promises a brighter and more secure future for both nations.
World Affairs
Australia
Quad
Malabar Exercise
Mutual Logistics Support Agreement (MLSA)
Australia-India Civil Nuclear Agreement
General Studies Paper 2
International Relations