This strategy outlines a vision of where Australia's relationship with India should be in 2025 and how Australia should get there.
Australia and India entered into a strategic partnership in 2009. By elevating the relationship to this level, both countries confirmed a strong commitment to expand and deepen collaboration.
India is a major regional power, and one that is rising globally. Of Australia’s significant bilateral relationships in Asia, that with India has perhaps the greatest potential to grow and develop towards 2025.
India can contribute to Australia’s vision of a more productive and resilient economy through greater trade and investment. Closer people-to-people, migration and travel links will benefit both countries, as will stronger bilateral and multilateral cooperation.
With a population of 1.2 billion people, India is a large and complex country.
In 2012, India became the third-largest economy in the world in terms of purchasing power parity (PPP), following 10 years in which average annual gross domestic product (GDP) growth was more than 7 per cent. The Indian economy is projected to grow at an average annual rate of 6.75 per cent between 2012 and 2025.
According to the United Nations Development Programme, over half of India’s population faces multidimensional poverty. Future growth and reduction in poverty will require a sustained effort to create jobs, improve skills, develop infrastructure and deliver better public services. The opportunities and challenges Australia faces when engaging with India could vary significantly depending on India’s rate and quality of growth, and the scale of its reform.
Australia can supply the resources that India needs to develop, whether this is coking coal for steel, or copper for construction. India is our fifth-largest export market and 10th-largest two-way trading partner. The two-way investment relationship is also growing. In 2012, India invested $10 billion in Australia, while Australia invested $5.7 billion in India.