Introduction

India and Australia have a shared history and language, common democratic traditions, similar legal, financial and Government structures and common interests as Indian Ocean littoral States. Cricket is an abiding passion. Both countries are members of the Commonwealth, founder members of the United Nations and members of the Indian Ocean Rim – Association for Regional Cooperation (IOR-ARC), ASEAN Regional Forum (ARF) and dialogue partners with ASEAN. With the increasing prominence of the Asia-Pacific region in global geo-politics and economics, Indo-Australian relations assume that much more significance. There are concerted efforts on both sides to expand and diversify bilateral relations.

In this context, many high level bilateral visits have taken place. Visits at Ministerial, Parliamentary and official levels from the Union Government and State Governments are a regular feature in Indo-Australian relations. Some of the high level visits include:

From India

The Minister of Commerce and Industries Shri Kamal Nath for the 9th Session of the Indo-Australian Joint Ministerial Commission (JMC) which was held in Sydney in May 2005; The Minister of Mines Shri Sis Ram Ola in May 2005; Minister of State (Independent Charge) for Overseas Indian Affairs Shri Jagdish Tytler in October 2004; Minister of Power, Shri P.M. Sayeed (for the 19th World Energy Congress in Sydney); External Affairs Minister Shri Yashwant Singh in August 2003; other visits have included those of Minister of Commerce, Industries, Disinvestment and Department of North Eastern Region Shri Arun Shourie in November 2002 (for the Informal Ministerial Meeting of the WTO in Sydney). External Affairs Minister Shri Jaswant Singh in March 2002 (leading India’s delegation to CHOGM at Coolum).

Various Export Promotion Councils/Chambers of Commerce and Industry have organised BSMs and participated in International fairs held in Australia:

From Australia

Most recently Australian Prime Minister Mr John Howard paid a State visit to India from March 2006 accompanied by a delegation of government officials and a high level business delegation.

Foreign Minister Alexander Downer visited India from June 2005; The Minister of State of Tourism, Ms Fran Bailey visited India in September 2005; The Federal Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, visited in end October early November 2005; The Federal Minister of Agriculture, Forestry and Fisheries Mr Peter McGauran in November 2005; The Premier of Victoria, Mr. Steve Bracks visited India from April, 2005, The Premier of South Australia, Mr. Mike Rann in September 2005; The Premier of Western Australia, Mr. Geoff Gallop in early October 2005; The Premier of New South Wales, Bob Carr in November 2004; The Premier of Queensland, Mr. Peter Beattie in February 2003; The Federal Minister for Education, Science and Training, Dr. Brendan Nelson visited India in the last week of October 2003; Trade Minister Mr. Mark Vaile in February 2003 (for the 8th Session of the Indo-Australian Joint Ministerial Commission).

Trade and Economic Cooperation

According to records, India’s trade with Australia dates back to 1791 when a British store ship ‘Sydney Cove’ was sent to Calcutta for food supplies during the famine in Australia. In 1801, a first shipment of coal was sent to Calcutta from Newcastle. Horses from New South Wales were sent to India in the early 19th century. Indo-Australian trade and economic relations today are active. However, its full potential has not been realised and there are considerable opportunities towards their consolidation.

The bilateral trade between India and Australia during the fiscal year 2004-05 touched a record A$ 7.25 billion. The value of total trade saw an increase of nearly 23.7 % or A$ 1.39 billion over the corresponding figure of A$ 5.86 billion in 2003-04.

India’s exports to Australia in 2004-05 were A$ 1.22 billion or 22 % higher than the corresponding figure of A$ 999.7 million in 2003-04.

India’s imports from Australia recorded A$ 6.05 billion or 24 % higher than the 2003-04 figure of A$ 4.87 billion.

In 2004-05 ( July - June) India ranked 6th in Australia’s export market. India’s share of Australia’s total exports was 4.8% for that period. India’s share of Australia’s total imports was 0.8% and ranked 25th as an import source during the same period. India ranked 12th as Australia’s trading partner during the year 2004-05 with a market share of 2.6%

Opportunities

Potential for Indo-Australian cooperation exists in infrastructure development including roads, ports, airports and railways; power sector; mining; oil and natural gas including LNG; biotechnology (both plant and human); drugs and pharmaceuticals; information technology; water management, soil conservation and waste disposal; food processing and agribusiness; film and television; processing of gems and jewellery; tourism; and education. The Commonwealth Games 2010 in New Delhi also provides a significant opportunity for sporting business including infrastructure development, venue management etc.

Joint Ministerial Commission and Joint Business Council

The status of bilateral trade and economic cooperation between India and Australia and opportunities thereunder are discussed between Ministers on a regular basis under the auspices of the Indo-Australian Joint Ministerial Commission (JMC). There are two Working Groups under the JMC viz. the Joint Working Group on Energy and Minerals and the Joint Business Group on Natural Fibres and Textiles. 9 Sessions of the JMC have been held so far with the last session being held in Sydney, Australia in May 2005. An India - Australia Trade and Economic Framework Agreement was signed during the Prime Minister Mr John Howard’s visit in March 2006.

Simultaneously with the JMC, the Indo-Australian Joint Business Council (JBC) also holds its regular sessions. Fifteen sessions of the JBC have been held so far with the last session in Sydney in May 2005. The 15th Session of the JBC took place in Australia at the time of the 9th Joint Ministerial Commission.

Investments

The total value of Australian investments in India during the period August 1991 to August 2005 was Rs 6355.24 million. This accounted for 0.44% of the total approved investment in India from all countries.

Bilateral Agreements

Some Major bilateral agreements signed between India and Australia include:

• Trade and Economic Framework Agreement
• Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with
respect to Taxes on Income
• Agreement on the Promotion and Protection of Investments
• Air Services Agreement
• Special Agreement on Cooperation in Science and Technology

Government offices and PSUs based in Sydney

Government of India Offices and PSUs in Australia include the Government of India Tourist Office, the State Bank of India, New India Assurance Co Ltd, Air India (offline station) and Engineers India Limited (in Perth).

Education

Australia has become an attractive destination for Indian students. Estimates indicate the presence of nearly 21,000 students in various Universities all over Australia.