Welcome to our daily program, AIR Spotlight, where we discuss pertinent issues with distinguished panelists. These discussions can be particularly useful for those preparing for the IAS exam. Today's topic is the relationship between India and Australia.
We're fortunate to have with us Prof. Harsh V Pant, a well-known Strategic Analyst, and our own AIR correspondent, Rangabhashiyam.
The discussion today is particularly timely as Australian Prime Minister Anthony Albanese is currently on a four-day official visit to India (8-11 March 2023). The focus of his visit is to strengthen the bond between India and Australia and discuss potential cooperation in various fields such as trade and investment, renewable energy, technology, defence, and security.
The India-Australia relationship has long been characterized by the three Cs - Cricket, Curry, and Commonwealth. However, the dynamics of this relationship have evolved over the last decade and a half, and new Cs have emerged – China, Climate, and Critical technologies.
The two countries have seen significant success in defence and security cooperation and diplomatic coordination. Their shared interests, particularly with regards to managing China’s assertiveness in the Indo-Pacific region, have brought them closer. They also collaborate on a wide range of areas through partnerships like the QUAD, including counter-terrorism, mining and refining of critical minerals, cyber-security, infrastructure financing, maritime security, space exploration and security, strategic research, supply chain resilience, sustainable energy projects, and vaccine manufacturing.
Both countries are also part of the Trilateral Supply Chain Resilience Initiative (SCRI) and the Indo-Pacific Economic Framework. The SCRI, launched during the COVID-19 pandemic, aims to strengthen supply chain resilience and promote strong, sustainable, balanced and inclusive growth in the Indo-Pacific region.
On the economic front, the India-Australia Economic Cooperation & Trade Agreement (ECTA) has been a significant milestone. This agreement provides a robust institutional mechanism to boost trade between the two countries and covers nearly all tariff lines.
The ECTA is expected to propel bilateral trade to cross US$ 45-50 bn in the next five years, up from the current US$ 31 bn. It is also anticipated to create at least a million additional jobs in India and open up new avenues for investment and promotion of start-ups.
Education is another key area driving the bilateral relationship between India and Australia. Australia's Deakin University has recently established its first-ever international branch campus (IBC) in Gujarat's GIFT city. This is a promising start to strengthening educational, commercial, and cultural ties between the two countries.
This initiative aligns well with India's National Education Policy 2020 and is set to revolutionize how universities and industries collaborate to shape the future of work.
The global automobile sector is also witnessing a paradigm shift towards alternative, less energy-intensive options. Lithium, a key component in electric vehicle batteries, is abundant in Australia, making it a potential partner for India in its transition to e-mobility.
In conclusion, the relationship between India and Australia has seen significant momentum in recent years. The ECTA is a testament to this, marking the first agreement with a large developed economy for India in over a decade.
Want to learn more about India-Australia Relations? Check out this article.
Read our previous AIR Spotlight discussions here.
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