India’s merchandise trade with Australia more than doubles from US $ 10.7 bn in 2020 to almost US $ 23 in 2021, with both exports and imports recording an all-time high of US $ 7.5 bn and US $ 15.2 bn respectively. India’s export to Australia have also recently seen a pick up said, Ms. Harsha Bangari Managing Director, India Exim Bank while speaking at the Exim Bank’s seminar on “India-Australia: Evolving Trade and Investment Paradigm”
It is noteworthy that the India-Australia ECTA (Economic Cooperation and Trade Agreement) is a first trade agreement of India with a developed country after more than a decade. The agreement encompasses cooperation across the entire gamut of bilateral, economic and commercial arrangements.
Australia, as we all know, is a highly developed free market economy, with its growth driven by robust expansion of exports, a strong services sector and an effective governance structure which has enabled a stable and transparent work environment.
With a GDP of around US$ 1.7 trillion, Australia is home to just 0.3% of the world’s population, yet accounts for 1.6% of the global economy. As the economy and international borders reopen, Australia’s GDP is expected to rebound and grow by a healthy 3.5% in 2021.
The synergies that India and Australia enjoy, serve as a foundation for closer cooperation and multidimensional interaction. Historically, India and Australia have been enjoying a strong and cordial relationship. Both New Delhi and Canberra have been realigning their interests, and these connections are expected to only grow manifold in the coming years. With the evolving global scenario, Australia has come to look at India as an important partner in promoting regional security and stability.
With the increased engagement of the governments of our countries, trade and investment prospects between India and Australia look immensely bright and have mushroomed in recent years, propelled by the many complementarities between the two economies.
Australia, being an important bilateral and economic partner for India, there remains immense scope to strengthen this mutually rewarding partnership, not only for the benefit of India and Australia but for sustained and common development in the Indo-Pacific region.
According to India Exim Bank’s research study that would be released shortly and made available to all on our website- there is significant potential for enhancing India’s exports to Australia, based on the huge import demand in Australia and India’s global export capability.
The study also highlights the enormous opportunities that exist for productive investment, in the key sectors of the Australian economy. Australia is an attractive foreign investment destination and is one of the easiest locations in the globe to start business. Immense opportunities exist in sectors such as renewable energy, critical mineral exploration, infrastructure and agri-business technology, which are also sectors promoted by the Government of Australia.