Introduction

The rise of Asia’s two giants, China and India, is forcing Australia to re-examine its understanding of the regional order that has existed since the 1940s. There has been much debate about the choices that Australia faces with a rising China, but there has been less discussion about the strategic consequences of India’s emergence.

Many are beginning to see a rising India as a major element in the Indo-Pacific strategic balance. Australia’s security relationship with India has been growing much closer over the last decade, driven by concerns about China as well as a host of other shared interests. In the long term, India is likely to become a key security partner in the Indian Ocean and possibly one of Australia’s most important security partners in the Indo-Pacific region.

But there has been little consideration how this burgeoning strategic relationship with India will fit with Australia’s core security relationship with the United States or with the US alliance system. India is not a traditional ally or customary partner for Australia. This report looks at the choices faced by Australia in building its strategic relationship with India in a way that fits with the US alliance and the broader regional order.

The report begins by looking at India’s role in the Indo-Pacific strategic balance and its growing security relationships with the United States and Australia. These have followed separate but largely parallel paths, spurred by similar imperatives. In recent years the United States and Australia have both courted India as a political, economic and security partner, and after some hesitation, India is moving to overcome some of the inhibitions that have previously constrained these relationships.

Although the three countries share many values and institutions, neither Australia nor the United States has previously been close to India. There are important differences in history and perspectives, including traditions that preclude India from entering into any formal security alliances. Nevertheless, the countries are moving towards a closer alignment that could perhaps be understood as a ‘joint venture’ for dealing with the changing regional order.

The latter part of this report examines two areas that Australia must consider in working with India. First, what are Australia’s perspectives on how India connects with the Asia Pacific region? If India can play an important role in the region, how might Australia help facilitate its integration into a regional rules-based order in a way that meets both India’s and Australia’s strategic needs?

Second, how might Australia foster a trilateral partnership with both India and the United States? The centrality of the US alliance for Australia makes trilateral cooperation highly preferable and indeed, an imperative in the long term. But India’s traditions constrain its ability to cooperate. This report proposes that Australia should build a defence partnership with the United States and India with a primary focus on the Indian Ocean. This would initially emphasise working together in selected areas, including joint exercises, maritime domain awareness, and search and rescue/ humanitarian and disaster relief. Building trust and habits of cooperation among the three countries will be an essential step in creating resilient partnerships to deal with long term transitions of power in the region.