February 12, 2020
There is a huge potential for growth, as India accounted for only 2 per cent of Australia’s merchandise imports and 2.7 per cent of services imports in 2018
The key products and areas where India’s exports to Australia can grow include petroleum products, rail equipment, pharmaceutical products, and automobiles
India is Australia’s 4th largest trading partner - total Indian investment in Australia is US$10 billion, while total Australian investment in India is US$9.2 billion
The Australian Government has commissioned an India Economic Strategy in 2018, to cement India as a priority economic partner till 2035 to drive mutual growth
At a roundtable discussion organised by the Indo-Australian Chamber of Commerce in Chennai in the first week of February, Ambassador Anil Wadhwa, a former senior foreign service official of the Government of India, said that India can increase its exports to Australia to US$15 billion by 2025 and US$35 billion by 2035. His presentation highlighted the potential for growth since in 2018 India accounted for only 2 per cent of Australia’s merchandise and 2.7 per cent of services imports.
Mr. Wadhwa also mentioned that bilateral trade in goods and services between Australia and India stood at US$23.3 billion in 2018, of which goods accounted for US$17.8 billion while services contributed about US$5.5 billion. He added that the key products and areas where India’s exports to Australia can grow include petroleum products, rail equipment, pharmaceutical products, and automobiles.
As per the Australian Trade and Government website, India is Australia’s 4th largest trading partner. Total Indian investment in Australia is around US$10 billion (up from US$400 million in 2006), while total Australian investment in India is over US$9.2 billion. The Australian Government commissioned an India Economic Strategy in 2018, to cement India as a priority economic partner till 2035.
The defence and foreign secretaries of India and Australia had met for the 3rd India-Australia 2+2 Dialogue in New Delhi on December 9 to emphasize the need for enhanced collaboration. Apart from the steps taken to further bilateral trade, 2019 saw several strategic investments in various sectors in India by Australian companies. An Australian delegation had attended the 13th India International Trade Fair in Delhi earlier this month.
In January this year, India and Australia entered into seven agreements related to the field of education, following the 4th Australia-India Education Council Meeting (AIEC) that was held in Adelaide, Australia, in June 2018. The steadily strengthening relationship between the two countries is sure to drive a vast scope of sustainable trade synergies in the future.