Timing has always been a challenge in Australia’s relationship with India. In the past substance often lagged enthusiasm. Today the risk is that we are not moving fast enough and Australia might fall behind as other countries accord India a higher priority. This is already happening in some areas.

The Australian Government commissioned this report to look beyond the immediate horizon and provide a roadmap for unlocking the opportunities that will help India and Australia grow together.

Central to this report are judgements about why India matters to Australia. India is the fastest growing large economy in the world. It will have the world’s largest population well before 2035. Beyond scale and complementary economies, India also offers us an opportunity to spread our trade and investment risk in Asia.

The report covers how things in India are changing for the better, the challenges that remain and the importance of locating our economic strategy within a broader relationship with India, of which a growing geopolitical congruence and people to people ties are the other two pillars.

The report contains detailed chapters on each of the 10 sectors identified as areas where Australia has a measure of competitive advantage.

The chapter on Indian states is designed to answer the question: where should Australia focus and where do you start in a market as large and diverse as India?

The report seeks to provide a balanced perspective of both the challenges and opportunities in the Indian marketplace. The scale of India and the rhetorical flair of its leaders can at times gloss over the challenges on the ground or the way in which India can test the patience of even the most committed. I have sought to put the challenges in perspective and to acknowledge the significant changes and reforms which are taking place, concluding that the balance sheet overwhelmingly favours opportunities over constraints.

Indian policy makers know what needs to be done. They do not need tutorials on the policy options. But they also know that managing a country as big and diverse as India with a robust democracy and a vocal media will inevitably mean compromises, delays and less than ideal policy approaches. In this India is not unique.