Both sides are keen to explore untapped opportunities in trade, technology, and tourism
The 19th India-Australia Joint Ministerial Commission Meeting has marked a significant milestone in the evolving trade and economic relationship between India and Australia. The meeting, co-chaired by India's Minister of Commerce and Industry Piyush Goyal and Australia’s Minister for Trade and Tourism Senator Don Farrell, focused on expanding bilateral trade, investment, and economic cooperation between the two nations.

Held in Adelaide on September 25, 2024, the meeting reinforced the deepening partnership between the two countries, with both sides keen to explore untapped opportunities in trade, technology, and tourism. This meeting was the first official visit of an Indian trade minister to Australia since the Albanese Labour Government came into power. It underscored the growing strategic and economic importance of India-Australia relations.

India’s Push For Greater Trade & Investment
A major highlight of the commission meeting was the announcement of a new Investment, Trade, Technology, and Tourism (ITTT) office in Sydney. Minister Goyal stated that this office will represent key Indian trade and investment bodies, including Invest India, the National Industrial Corridor Development and Implementation Trust (NICDIT), and the Directorate General of Foreign Trade (DGFT), along with private sector participation through the Confederation of Indian Industry (CII).

The establishment of the ITTT office will aim to facilitate smoother trade and investment dealings, addressing issues faced by businesses and investors on both sides. It is a strategic step towards fostering deeper economic ties and promoting greater collaboration in critical sectors such as technology and tourism.

During the meeting, Minister Goyal highlighted the unprecedented level of trust and cooperation between India and Australia. He referred to the remarkable fact that the Prime Ministers of both nations have met nine times since May 2022, signaling strong diplomatic momentum. The minister also emphasised the tremendous opportunities that remain to be explored jointly by the two countries.

"We are celebrating 10 years of the ‘Make in India’ initiative, launched in 2014 by Prime Minister Narendra Modi. This initiative has driven significant growth across key sectors such as manufacturing, technology, and infrastructure. The synergy between ‘Make in India’ and Australia’s ‘Future Made in Australia’ can unlock further economic potential," Minister Goyal remarked.

The Indian minister also articulated India’s "4 D strengths"—Decisive leadership, the Demand of 1.4 billion aspirational citizens, the Demographic dividend (with an average age of 28.4 years), and Democracy. He noted that these strengths make India a powerful partner for Australia as the two countries seek to strengthen trade and investment links.

Focus on Comprehensive Economic Cooperation Agreement 
A significant point of discussion was the progress under the India-Australia Economic Cooperation and Trade Agreement (ECTA), which has been in effect since December 2022. Senator Don Farrell shared that since the agreement came into force, around $30 billion worth of Australian exports have entered India tariff-free, benefiting both economies. Australians have saved approximately $225 million on goods imported from India, signifying the real-world impact of the ECTA.

Both ministers expressed their mutual desire to expedite the ongoing negotiations for a Comprehensive Economic Cooperation Agreement (CECA), a more ambitious free-trade agreement aimed at deepening the bilateral economic relationship. The CECA aims to build on the success of the ECTA, further liberalizing trade in goods and services while boosting investments between the two nations.

"Australia is keen to conclude a Comprehensive Economic Cooperation Agreement with India," stated Senator Farrell. "This will create new opportunities for businesses on both sides and further strengthen our economic relationship."

Minister Goyal emphasized India's abundant and highly skilled workforce, which could complement Australia’s demand for professional services. He noted that the mutual recognition of qualifications and services remains a priority for both countries, with discussions ongoing to finalize Mutual Recognition Agreements (MRAs) in services and organic products.

Roadmap for Expanding Trade Across Sectors
With both countries setting an ambitious target of achieving $100 billion in bilateral trade by 2030, the commission outlined a roadmap for expanding trade across sectors. The ministers also acknowledged the importance of closer cooperation at multilateral forums such as the G20, Indo-Pacific Economic Framework (IPEF), and the World Trade Organization (WTO).

Australia is eager to capitalise on new growth opportunities in sectors such as clean energy, agribusiness, education and skills, and tourism. The Australian government has already completed consultations on a new roadmap for its economic engagement with India, focusing on these areas.

India, being one of Australia’s largest trading partners, offers vast potential for Australian businesses, especially in clean energy and agribusiness. In 2023-24, two-way trade in goods between India and Australia amounted to over $6.7 billion, with total bilateral trade in goods and services reaching close to $50 billion by the end of 2023.

"India’s fast-growing economy, set to become the third-largest in the world by 2030, presents an enormous opportunity for Australian businesses," said Senator Farrell. "Our government is committed to ensuring that Australian businesses benefit from this growth by enhancing our trade partnerships with India."

The ministers acknowledged the importance of fostering stronger people-to-people connections. They discussed avenues to enhance aviation connectivity between India and Australia to facilitate greater business travel, tourism, and cultural exchanges. Minister Goyal emphasised that improving aviation connectivity is essential for promoting bilateral tourism and business engagements.

Both sides also expressed their commitment to encouraging greater student exchanges, recognizing the value of education as a pillar of the bilateral relationship. India's growing demand for higher education and skills training aligns with Australia's expertise in this area, presenting further collaboration opportunities.

The 19th Joint Ministerial Commission between India and Australia marks a significant step forward in strengthening economic ties. With both countries actively working towards the conclusion of a Comprehensive Economic Cooperation Agreement and setting ambitious trade targets, the future of India-Australia relations looks promising.

As the two nations continue to collaborate across various sectors, including clean energy, agribusiness, and technology, they are well on their way to becoming key strategic and economic partners in the Indo-Pacific region.