Australia’s security require good relations with India
For Australia to be safe, secure and prosperous, it requires having good relations with the most stable and growing economic and military power in the neighbourhood that is India. Prime Minister Anthony Albanese’s new term in office, should see a continuation of the his policy of both stabilizing and enhancing its relationship with India.
The relationship is in much better condition than it was a decade ago and this positive trajectory must continue in the interest of Australia and the entire Indo Pacific.
India and Australia had signed the Economic Cooperation and Trade Agreement in December 2022 itself during Albanese first term in office. The ECTA has already helped in tariff reduction on a wide range of goods and Services. Australia must work hard to sign a more Comprehensive Economic Cooperation Agreement with India. This CECA will help Australia to survive both Donald Trump and Xi Jinping.
Following the signing of ECTA, total bilateral trade in 2023 -2024 had increased by 14% over the previous year to INR 204000 Crores or Aus $38 billion. For the period 2024 – 2025 the growth has been over 5% over the figure of previous year i.e. over AUS$ 40 billion. Presently Australia is the 13th largest trading partner of India. By contrast India is the 5th largest trading partner of Australia.
Ofcourse the total bilateral trade between Australia and China reached AU$326.9 billion in 2024 making China Australia’s largest trading partner, accounting for 27% of Australia’s total trade in goods and services. Australia’s exports to China were AU$218.8 billion, while China’s exports to Australia were AU$73.8 billion. This figure shows that China can always dictate things by sudden reduction of imports from Australia. Chinese have done this earlier and can easily do so in future.
Similarly Australia is at 21st pisition as a trade partner of USA with bilateral trade of Aus $ 93 billion. Though for Australia, the Americans are at 4th place.
Australia in fact has provided billions of tons of iron ore to China and they turned those billions of tons of iron ore into high-speed rail, enormous bridges and dams, weapons and all the infrastructure that has made China a great economy. It has also helped power Chinese manufacturing.
In return Australia still remains a FOOTNOTE country which is not taken seriously even by many of the Ocenian Island nations.
No wonder to counter Trump’s tariff mad warfare on the World,
Australia has already unveiled an ambitious strategy aimed at deepening and broadening its trade and investment relationship with India.
Prime Minister Anthony Albanese unveiled an ambitious roadmap to deepen and diversify its trade and investment ties with India. Nearly 50 targeted opportunities across sectors such as defense, sports, culture, space, and technology have been identified.
Australian Foreign Minister Penny Wong said that stronger economic ties with India would not only create employment for Australians but also contribute to a peaceful and prosperous Indo-Pacific region.
Trade and investment have been enhanced particularly in sectors such as textiles, pharmaceuticals, chemicals, and agriculture. Furthermore, India’s import of essential raw materials—including metalliferous ores, cotton, and wood products—has supported industrial growth, underscoring the complementary nature of the bilateral partnership.
New export categories have emerged such as calcined petroleum coke, high-capacity diesel generating sets, and air liquefaction machinery, signalling the expansion of trade opportunities.
Albanese has rightly emphasized that India is a critical partner as Australia seeks to diversify its trade relationships and enhance economic security.
Australia is realigning its focus on sectors that hold the most promise for the future. The 2025 roadmap highlights four high-potential sectors that are expected to drive the next phase of the Australia-India economic relationship:
Clean energy: Leveraging Australia’s expertise in renewable energy to support India’s sustainability goals and facilitate collaborative research and investment.
Education and skills: Strengthening academic partnerships, enhancing vocational training programs, and promoting knowledge exchange to build a future-ready workforce.
Agribusiness: Expanding agricultural trade, improving food security, and fostering agribusiness collaborations to meet India’s increasing demand for high-quality produce.
Tourism: Promoting cultural exchanges, simplifying visa processes, and encouraging tourism initiatives to strengthen people-to-people ties and boost economic activity.
Ranked as the world’s fourth -largest economy in USD as of 2025, India is projected to move up to third place by 2030, behind the US and China. India is already at No3 position as measured in terms of Purchasing Power Parity
This rapid growth presents an opportunity for Australia to gain from India’s rising economic trajectory. Additionally, Australia remains a key supplier of raw materials to India, reinforcing the economic foundation for continued collaboration and mutual growth.
India has also steadily increased its investment footprint in Australia, reflecting growing confidence in the Australian economy and expanding bilateral ties. According to data from the Australian Department of Foreign Affairs and Trade (DFAT), India ranked 15th among foreign investors in Australia in 2023. This marks a notable increase from A$29.2 billion in 2021, indicating a positive growth trajectory in India’s outbound investments.
The signing of the Migration and Mobility Partnership Arrangement (MMPA) has enhanced and supported two-way migration, fostering workforce mobility and knowledge exchange. This agreement is designed to strengthen ties between the people of both nations and facilitate the movement of skilled professionals and students, thereby contributing to the long-term growth of the bilateral relationship.
The MMPA agreement Signed on May 23, 2023, during Indian Prime Minister Narendra Modi’s visit to Australia, seeks to facilitate smoother migration processes while preventing irregular migration and ensuring ethical recruitment practices.
As both countries continue to strengthen their economic ties, the evolving partnership is poised to deliver long-term, sustainable benefits. By focusing on sectors with the highest growth potential and addressing emerging challenges, Australia and India are well-positioned to unlock new opportunities and foster a resilient and prosperous economic future. With the right strategy and continued collaboration, the partnership holds the potential to create lasting positive impacts for both countries, driving growth and prosperity for years to come.
The growth in trade will encourage more people-to-people exchanges. That’s where you really strengthen a relationship. Australia should announced 30-day visa-free travel to Indians and it would be wonderful if more Indians saw Australia as a good holiday destination..
The Australian tourism industry should be keen to get the exploding Indian tourism to its shore.
Trump swatting even friends like Australia with a a 10 percent flat tariff has insulted many Australians because they have been nothing but a loyal ally – more precisely a “lap dog” – to the US. They have done its bidding blindly every time it’s asked. They have even accepted trade deficit where America profits from trade. Australians don’t profit from trade with America. Due to the past, politically, Australian’s are wedded to this military-strategic alliance with the US. And the political pressure to submit to the US on all matters is enormous.
Now Australians are becoming aware that India will be a more equitable and stable partner. The Australian government is realizing that instead of AUKUS agreement with the US and the associated military build-up, including the increasing presence of US military forces in Australia, QUAD is the better bet.
USA just cannot dictate any of its own agenda to QUAD. India will just not permit.At the same time now the punishment inflicted on Pakistan for supporting terror acts against India, through Operation Sindoor, India has demonstrated its capabilities. India can even keep China in proper check and dissuading it from carrying out any mischief in the Indo Pacific.
