Australia to invest over $280 to boost cooperation with India

The Scott Morrison government has decided to invest over $280 million to boost cooperation with India, to further grow our economic relationship and support jobs and businesses in both countries, the Australian government said in a press statement on Tuesday.

In 2020, India was Australia’s seventh largest trading partner, with two-way trade valued at $24.3 billion, and sixth largest goods and services export market, valued at $16.9 billion. In 2020, India was Australia’s third largest market for services exports.

According to the press statement the Australia will provide additional investment in the relationship including $16.6 million to strengthen linkages with India’s key policy and finance institutions and $8.9 million to support enhanced business engagement and an increased Australian trade presence in India.

After the virtual meeting between Prime Ministers Morrison and Modi, Australia committed $17.2 million to extend the Australia-India Strategic Research Fund to continue supporting a world-class relationship and establish an Australia-India Innovation and Technology Challenge.

According to the Australian government statement, $35.7 million will be invested in a Green Steel Partnership, a Critical Minerals Research Partnership, and a contribution to the International Energy Agency to support cooperation on research, production and commercialisation of clean technologies, critical minerals and energy.

$25.2 million to expand the Australian Space Agency’s International Space Investment initiative to deepen space cooperation with India. Australia also allocated $28.1 million to launch a Centre for Australia-India Relations to deepen community ties, promote public discussions and policy dialogue, and engage the Indian diaspora.

Australia’s Minister for Trade, Tourism and Investment Dan Tehan said the Morrison Government was investing to grow the Australia-India economic, trade and investment relationship.

“India and Australia share common values, complementary economies and strong people-to-people links that make us ideal partners,” Mr Tehan said.

“The Government remains committed to the India Economic Strategy and its ambitious goals: to lift India into our top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment,” he said.

“Australia’s Indian community is young and highly educated and well represented across services and STEM sectors with strong export potential,” Mr Tehan said.

He further said, “Indian diaspora networks can make important contributions to our trade and investment relationship with India, and also to Australia’s international competitiveness generally.”