Australia today committed to a landmark investment package worth $280 million with India to further grow the bilateral economic relationship and support jobs and businesses in both countries.
The package was announced by Australia’s Minister for Trade, Tourism and Investment Dan Tehan in a press statement issued a day after the second virtual summit between Prime Minister Narendra Modi and his Australian counterpart Scott Morrison.
India is already an important economic and security partner of Australia in the Indo-Pacific. 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.
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.
At the summit between the two leaders, Australia pledged:
–$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;
–$35.7 million for 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; and
–$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.
The Australian minister 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,” he said.
“Our partnership with India is vital as we both strive for stronger, sustainable economic growth and more secure and diversified trade and investment patterns and supply chains. 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,” Tehan said.