The Albanese Government has launched A New Roadmap for Australia’s Economic Engagement with India, a visionary plan aimed at maximizing trade opportunities, benefiting businesses and consumers, securing supply chains, and creating jobs. With India’s economy set to become the third-largest in the world by 2030, Australia is positioning itself to tap into the vast trade and investment opportunities that lie ahead.
Building a Stronger Economic Future
The Roadmap sets a strategic direction for boosting two-way investment and engaging with Indian-Australian communities and businesses. It identifies four ‘superhighways of growth’ where Australia has a competitive advantage: clean energy, education and skills, agribusiness, and tourism. Additionally, nearly 50 specific opportunities have been highlighted to accelerate engagement in fields such as defence industries, sports, culture, space, and technology.
Key Investments to Strengthen Trade Relations
To support this ambitious initiative, the Albanese Government is investing:
- $16 million for the Australia-India Trade and Investment Accelerator Fund, designed to help Australian businesses unlock commercial opportunities in India.
- An additional $4 million for the Maitri (‘friendship’) Grants Program, fostering deeper people-to-people, business-to-business, and cultural ties.
Unlocking Growth Through the Free Trade Agreement
Australia’s existing free trade agreement with India has already delivered significant benefits:
- Australian businesses have saved hundreds of millions of dollars in tariffs.
- Exporters are on track to save approximately $2 billion in tariffs by the end of the year.
- Nearly 200 Australian products have entered or re-entered the Indian market since the agreement took effect.
- Agricultural exports to India have surged by 146% from 2022 to 2024.
- Iron and steel exports have increased by 189% during the same period.
These savings are directly impacting Australians, reducing costs for consumers and creating more local jobs. As negotiations for a new free trade agreement continue, even more trade opportunities are expected to open up for Australian businesses.
A Strengthened Bilateral Relationship
Australia’s relationship with India is at an all-time high. Since taking office, Prime Minister Anthony Albanese has met with Prime Minister Narendra Modi in person ten times, including at two Annual Leaders’ Summits. Both leaders have emphasized the importance of deepening ties, with Australia continuing to engage closely with India through the Quad, working toward a stable and prosperous Indo-Pacific region.
Australia’s strong Indian community plays a vital role in fostering economic and cultural connections between the two nations. The Roadmap builds on this foundation, ensuring that businesses and individuals alike can benefit from enhanced collaboration.
Driving Opportunities Across Key Sectors
The Roadmap outlines practical measures to boost tourism, such as increasing direct flights between Australia and India, promoting Australia as a key travel destination, and supporting Australian sports businesses. Indian tourists currently contribute over $1.5 billion annually to Australia’s economy, and there is substantial potential for further growth as India’s middle class expands.
Industry Success Stories
Several Australian businesses are already benefiting from enhanced trade relations with India:
- Marquis Macadamias: Due to reduced import tariffs, the company was able to send its first container shipment of macadamias to India in September 2023.
- Foodie Trails: This Melbourne-based business helps visitors explore diverse food cultures through walking tours and events, promoting regional tourism.
- Entura (Hydro Tasmania): The company has leveraged Australia’s India-Australia Renewable Energy Partnership to support India’s clean energy goals through hydro power projects.
A Bold Vision for the Future
Prime Minister Anthony Albanese emphasized the importance of this initiative:
“India is an essential partner as we diversify our trade links to boost prosperity for all Australians. This Roadmap is critical to helping us fully realize our potential with India, which will be a boon to Australia’s economy, our businesses, jobs, and our prosperity.”
Foreign Minister Senator Penny Wong added:
“By boosting our economic ties with India, we are not only creating more jobs and opportunities for Australians, but also advancing our shared interest in a peaceful, stable, and prosperous Indo-Pacific.”
As Australia and India continue to strengthen their economic relationship, the launch of A New Roadmap for Australia’s Economic Engagement with India marks a pivotal step toward a thriving partnership that benefits both nations.
