The burgeoning relationship between India and Australia has been a topic of increasing interest in recent years. With Australian Prime Minister, Scott Morrison’s visit to India in March 2023, the countries aim to bolster ties by deepening trade, investment and defence relations. This article examines the history of their relations, current key initiatives, challenges faced, and future perspectives.
Historical Background of India-Australia Relations
The diplomatic relations between India and Australia began as early as pre-Independence era with the opening of the Indian Consulate General as a Trade Office in Sydney in 1941. Despite a few setbacks, such as Australia’s condemnation of India’s nuclear tests in 1998, the ties evolved positively. In 2014, Australia signed an Uranium supply deal with India, highlighting India’s commendable non-proliferation record.
Shared Values Infusing Bilateralism
India and Australia share common democratic values, Commonwealth traditions and similar systems of governance. The countries’ strong, secular, multicultural democracies are underpinned by independent judicial systems, a free press, and widespread use of English language.
The Strength of People-to-People Ties
India is among the leading sources of skilled immigrants to Australia. As reported in the 2021 census, approximately 9.76 lakh people in Australia have Indian ancestry, constituting the second-largest group of overseas-born residents in Australia.
Establishing Strategic Ties
Increasing high-level interactions and exchange of ministerial visits have elevated the bilateral relationship from a strategic partnership to a comprehensive strategic partnership. 2022 witnessed a string of significant dialogues, including the 2nd India-Australia Virtual Summit, which yielded vital agreements on migration and mobility partnerships to foster skills exchange.
Defence Cooperation and Joint Military Exercises
The years 2020 and 2021 were pivotal in escalating defence cooperation with the signing of the Mutual Logistics Support Agreement (MLSA) and conducting the 2+2 Ministerial Dialogue. Furthermore, Australia will host the “Malabar” exercises in August 2023, featuring participation from India, Japan, and the US.
The Role of China
The strained ties between Australia and China, caused by various disputes, have an indirect impact on India-Australia relations. Both India and Australia support a rules-based international order and seek to bolster regional institutions in the Indo-Pacific.
Multilateral and Economic Cooperation
India and Australia’s collaboration extends to multilateral platforms such as the Quad, Commonwealth, Indian Ocean Rim Association (IORA), and ASEAN Regional Forum. Economically, they are linked by the Economic Cooperation Trade Agreement (ECTA), which was signed in December 2022, reducing duties on majority of their respective exports.
The Supply Chain Resilience Initiative (SCRI) and Bilateral Trade
India and Australia are partners in the trilateral arrangement, SCRI, aiming to fortify supply chains in the Indo-Pacific Region. As of 2021, Australia is India’s 17th largest trading partner, while India ranks 9th for Australia.
Cooperation in Education and Clean Energy Sectors
Australia recognises India’s educational qualifications, facilitating student mobility between the two nations. Furthermore, several Australian universities are planning to open campuses in India. On a sustainable note, both countries have committed to investment partnerships in critical minerals and have agreed on cooperation for reducing the costs of renewable energy technologies.
The Challenges Ahead
Despite the strengthening ties, India and Australia encounter challenges like the controversy over the Adani coal mine project, concerns over visa restrictions, and attacks on the Indian diaspora in Australia. These issues require attention to ensure that the bilateral relations continue to thrive.
The Road Ahead
India-Australia relations have significantly strengthened in recent years backed by shared values, interests, geography, and objectives. Initiatives like the India-Australia bilateral Summits present an opportunity to further bolster ties and play a more active role in ensuring a rule-based order in the Indo-Pacific region.
Last Modified: February 20, 2024