What Does India & Australia Economic Relations Hold?

In a move set to bolster economic ties and deepen collaboration, India and Australia have pledged to work closely on a range of collaborative projects, resolve market access issues, and strengthen people-to-people contacts. The commitment came during a recent Joint Committee Meeting (JCM) aimed at enhancing bilateral economic cooperation.

India-Australia JCM 

India and Australia have long recognized the potential for growth in their trade relationship, with merchandise trade reaching around 24 billion USD in 2023-24. The Joint Committee Meeting provided a crucial platform for both nations to build upon this foundation, with discussions focusing on trade facilitation, investment promotion, and support for technology.

Led by Commerce Secretary Shri Sunil Barthwal, the Indian delegation engaged in constructive discussions with counterparts from the Department of Foreign Affairs and Trade (DFAT) in Canberra, as well as businesses in Sydney and Melbourne. The aim was to deepen existing economic relations, leveraging each country's strengths and unexplored potential.

India-Australia Economic Relations

During the JCM, both sides addressed key implementation issues under the India-Australia Economic Co-operation and Trade Agreement (Ind-Aus ECTA). These included market access issues for various products such as okra, pomegranate, and pharmaceuticals, among others. Discussions also encompassed regulatory challenges in sectors like whisky and wine, coastal tourism, and collaboration in establishing Disease-Free Zones for shrimps and prawns in India.

A notable outcome of the meeting was the establishment of an institutional mechanism for the regular exchange of preferential import data—a first of its kind for Free Trade Agreements (FTAs). Additionally, discussions touched upon services issues, including cross-border e-payments and mutual recognition agreements in professions like nursing and dentistry.

The JCM reaffirmed the commitment of both India and Australia to foster a robust and mutually beneficial economic relationship. This commitment extends to ongoing negotiations under the India-Australia Comprehensive Economic Cooperation Agreement (CECA), where both sides reviewed progress made after nine rounds and explored areas for deeper cooperation across various sectors.

Furthermore, discussions on WTO issues underscored the importance of mutual support for resolving long-standing issues such as public stock holding and plurilateral arrangements for domestic support for services.

Meetings with businesses and associations highlighted a shared eagerness to enhance collaboration across sectors. Areas of mutual interest identified included capacity building, vocational training, digital connectivity, agriculture, healthcare, and space exploration, among others. The enthusiasm from both governments and businesses signals a strong determination to elevate the strategic partnership to new heights, benefiting businesses and citizens alike.