Sansad TV Perspective: India-Australia Relations

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic: ‘India-Australia Relations’

Anchor: Teena Jha

Participants:

1. Navdeep Singh Suri, Former Ambassador
2. Harsh V Pant, Vice President, Studies and Foreign Policy, ORF
3. Natasha Jha Bhaskar, Executive Director, Newland Global Group 

Context: Australian Prime Minister Anthony Albanese’s visit to India.

Highlights of the Discussion:

1. Introduction
2. Agenda
3. Significance of the visit
4. Comprehensive Strategic Partnership
5. China Factor
6. Potential Challenges for Australian Companies

Introduction:

• Australian Prime Minister Anthony Albanese is on a four-day visit to India from March 08 to March 11, 2023.
• Prime Minister Albanese will be accompanied by Australia Minister for Trade and Tourism Senator Don Farell and Minister for Resources and Northern Australia Madeleine King and other senior officials and a high-level business delegation during this visit, as per the Ministry of External Affairs (MEA). 

Agenda of the Visit:

• It is PM Albanese’s first bilateral visit to India since the Labour Party government was sworn in in May 2022. 
• The visit to India aims to further strengthen India-Australia bilateral relations.
• PM Albanese leads a business delegation to India as his government wants to diversify trade and foreign investment partners. 
  • India and Australia have entered into an Economic Cooperation and Trade Agreement in 2022. 
  • Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner.
• Recently, India and Australia signed an agreement on mutual recognition of university degrees, making it easier for students studying in one country to get their degrees recognised in the other. More agreements are expected to be signed between Indian and Australian universities to strengthen the partnership, moving from providing courses to establishing campuses.
• PM Albanese’s visit is also expected to give momentum to cooperation on critical minerals, particularly lithium.

Also read: Australia’s Deakin University Campus in India

Significance of the visit:

• During the visit of the Australian PM, India is expected to announce significant investments in the rare earth sector in Australia. 
  • KABIL (Khanij Bidesh India Limited) is set to make a significant investment in the rare earth sector in Australia, a move welcomed by the Australian government and the Indian government, particularly by the business community.
• India and Australia are keen to cooperate in the field of clean energy and have taken several initiatives on the matter. 
  • India and Australia have signed a Letter of Intent (LoI) on New and Renewable Energy in February 2022 which provides for cooperation towards bringing down the cost of renewable energy (RE) technologies, especially ultra low-cost solar and clean hydrogen.
• Australia supports India’s candidature in an expanded UN Security Council. Both India and Australia are members of the Commonwealth, IORA, ASEAN Regional Forum, International Solar Alliance, Coalition for Disaster Resilient Infrastructure, and Indo-Pacific Economic Framework and have participated in the East Asia Summit.
• India is one of the top sources of skilled immigrants to Australia. The Indian community in Australia continues to grow in size and importance.
  •  As per the 2021 Census, around 9,76,000 people in Australia trace their ancestry to Indian origin, making them the second largest group of overseas-born residents in Australia.

India-Australia Comprehensive Strategic Partnership:

• In June 2020, India and Australia elevated their bilateral relationship to a Comprehensive Strategic Partnership, which marked a new era of cooperation between the two countries. 
• The partnership builds on their shared interests and values, and seeks to deepen engagement across various sectors, including defense, trade and investment, education, science and technology, and people-to-people ties.
• Under the Comprehensive Strategic Partnership, both countries have committed to regular high-level talks and meetings, including the 2+2 Ministerial Dialogue between their foreign and defense ministers.
• The first-person India-Australia Annual Summit will take place during the visit. At the annual summit, leaders are expected to take stock of progress made on various initiatives under the India-Australia Comprehensive Strategic Partnership. 
  • The summit also lays the way forward on new initiatives and enhanced cooperation in a diverse range of sectors between the two countries besides regional and global issues of mutual interest.
• The India-Australia Comprehensive Strategic Partnership represents a significant step forward in the bilateral relationship between the two countries, as it seeks to deepen and broaden cooperation across multiple sectors and enhance regional stability and security in the Indo-Pacific region.

China Factor:

• China’s growing influence in the Indo-Pacific region has played a significant role in bringing India and Australia closer together. Both countries have concerns about China’s increasing assertiveness in the region and its territorial claims in the South China Sea.
• India and Australia have a shared interest in maintaining regional stability and security, and have expressed their commitment to upholding the rules-based international order. 
  • In recent years, both countries have deepened their defense and security ties, including through military exercises, intelligence sharing, and technology cooperation.
• China’s aggressive behaviour towards India, including its border disputes and territorial claims in the Himalayas, has also brought India and Australia closer together. Both countries have expressed their support for each other’s territorial integrity and sovereignty, and have emphasized the need to uphold international law and respect for territorial integrity.
• In addition, China’s economic expansion in the region has also led to concerns about its influence and the need for greater economic cooperation among like-minded countries. 
  • India and Australia have both sought to enhance their economic ties, with a focus on reducing trade and investment barriers and promoting greater economic cooperation.
• However, the India-Australia relationship is based on shared values and interests, and is not directed against any specific country. Both countries are committed to promoting regional stability and security and upholding the rules-based international order, which is essential for the long-term prosperity and security of the Indo-Pacific region.

Potential challenges for Australian companies:

• While India offers significant potential as a market for Australian companies, there are several challenges that they face before entering the market. 
• India has a complex regulatory environment that can be challenging for foreign companies.
• India’s infrastructure is still developing, and companies may face challenges in areas such as transportation, logistics, and electricity supply.
• India has a diverse cultural and linguistic landscape, and companies need to be sensitive to these differences when doing business in the country. 
• While India offers significant potential as a market, companies may face challenges in accessing the market as it has a complex distribution network, and companies need to be aware of the market dynamics and competition in their sector.
• India’s intellectual property protection laws are still evolving, and companies need to take appropriate steps to protect their intellectual property rights when doing business in India.

Read more on India-Australia Relations.

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