Introduction
The India-Australia bilateral relationship is underpinned by shared values of a pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic engagement and increasing high level interaction. The longstanding people-to-people ties, ever increasing Indian students coming to Australia for higher education, growing tourism, and sporting links, especially Cricket and Hockey, have played a significant role in further strengthening bilateral relations between the two countries.
The ever-increasing numbers of Indian students travelling to Australia for higher education, and the growing tourism and sporting links, have played a significant role in strengthening bilateral relations. With greater convergence of views on issues such as international terrorism, and a shared commitment to a rules-based order in the Indo-Pacific region, the two democracies have taken their cooperation to plurilateral formats, including the QUAD (with the United States and Japan).
Strategic ties
In September 2014, Australia’s Prime Minister Tony Abbott visited India, and in November that year, Modi became the first Indian Prime Minister to make an official visit to Australia after Rajiv Gandhi in 1986. He also became the first Indian PM to address a joint sitting of the Parliament of Australia.
At the India-Australia Leaders’ Virtual Summit in June 2020, Modi and Prime Minister Scott Morrison elevated the bilateral relationship from the Strategic Partnership concluded in 2009 to a Comprehensive Strategic Partnership (CSP). The External Affairs Minister travelled to Australia on February 18, and his Australian counterpart Penny Wong visited from February 28 to March 3. Australia’s Education Minister Jason Clare also visited.
Economic cooperation
The Economic Cooperation Trade Agreement (ECTA) — the first free trade agreement signed by India with a developed country in a decade — entered into force in December 2022, and has resulted in an immediate reduction of duty to zero on 96% of Indian exports to Australia in value (that is 98% of the tariff lines) and zero duty on 85% of Australia’s exports (in value) to India. Bilateral trade was US$ 27.5 billion in 2021; with ECTA, there is potential for it to reach around US$ 50 billion in five years.
People-to-people ties
India is one of the top sources of skilled immigrants to Australia. As per the 2021 Census, around 9.76 lakh people in Australia reported their ancestry as Indian origin, making them the second largest group of overseas-born residents in Australia. To celebrate India@75, the Australian government illuminated more than 40 buildings across the country, and Prime Minister Albanese issued a personal video message.
Education
The Mechanism for Mutual Recognition of Educational Qualifications (MREQ) was signed on March 2 this year. This will facilitate mobility of students between India and Australia. Deakin University and University of Wollongong are planning to open campuses in India. More than 1 lakh Indian students are pursuing higher education degrees in Australian universities, making Indian students the second largest cohort of foreign students in Australia.
Defence cooperation
The 2+2 Ministerial Dialogue was held in September 2021, and the Deputy Prime Minister and Defence Minister of Australia visited in June 2022. The Mutual Logistics Support Agreement (MLSA) was concluded during the Virtual Summit in June 2020, and the two militaries held several joint exercises in 2022. Australia will host military operations with India, Japan, and the US in the “Malabar” exercises off the coast of Perth in August, and has invited India to join the Talisman Sabre exercises later this year.
Clean energy
The countries signed a Letter of Intent on New and Renewable Energy in February 2022 which provides for cooperation towards bringing down the cost of renewable energy technologies, especially ultra-low-cost solar and clean hydrogen. During the Virtual Summit in March 2022, India announced matching funds of AUD 10 million for Pacific Island Countries under Infrastructure for Resilient Island States (IRIS) and of AUD 10 million for Pacific Island Countries under International Solar Alliance (ISA).
Challenges in the ties
Ties between Australia and China were strained after Canberra in 2018 banned Chinese telecom firm Huawei from the 5G network. Later, it called for an inquiry into the origins of Covid-19, and slammed China’s human rights record in Xinjiang and Hong Kong. China responded by imposing trade barriers on Australian exports, and by cutting off all ministerial contact.
India has been facing an aggressive Chinese military along the border. New Delhi and Canberra have been assessing the Chinese challenge since 2013.
The way ahead
Both Australia and India support a rules-based international order and that they are partners in seeking to forge regional institutions in the Indo-Pacific which are inclusive, promote further economic integration, and can help to manage the tensions as economic growth across the region shifts strategic weight and relativities. The countries’ participation in Quad is an example of their convergence of interests, based on shared concerns.
Various institutional dialogue mechanisms include Annual Meetings of Prime Ministers, Foreign Ministers’ Framework Dialogue, Joint Trade & Commerce Ministerial Commission, India-Australia '2+2' Foreign Secretaries and Defence Secretaries Dialogue, Defence Policy Talks, Australia-India Education and Skills Council, Defence Services Staff Talks, Energy Dialogue, India-Australia-Japan Trilateral Dialogue, India-Australia-Indonesia Trilateral Dialogue, India-France-Australia Trilateral Dialogue, India-Australia Bilateral Dialogue on Global Cyber Issues, India-Australia Maritime Dialogue, India-Australia Economic Policy Dialogue, India-Australia Dialogue on Disarmament, Non-proliferation and Export Control as well as Joint Working Groups on Tourism, Counter-Terrorism, Water Resources, Agriculture, Skill Development etc.
India and Australia also co-operate in various multilateral fora. Australia supports India’s candidature in an expanded UN Security Council. Both India and Australia are members of the Commonwealth, IORA, ASEAN Regional Forum, Asia Pacific Partnership on Climate and Clean Development, International Solar Alliance, Coalition for Disaster Resilient Infrastructure, Indo-Pacific Economic Framework and have participated in the East Asia Summits. Both countries have also been cooperating as members of the Five Interested Parties (FIP) in the WTO context. Australia supports India’s membership in the APEC. In 2008, Australia became an Observer in SAARC.
Conclusion
India and Australia have transcended past misperceptions and established a promising partnership that holds tremendous potential in the 21st century. As Prime Minister Menzies’ decision in 1955 remains a relic of the past, India and Australia are committed to nurturing a vibrant and enduring partnership, solidifying their place as key actors in the global arena.