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Summary INDIA - AUSTRALIA RELATIONS

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INDIA - AUSTRALIA RELATIONS

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INTERNATIONAL RELATIONSHIP


10. AUTRALIA
India and Australia has shared a cordial relation with each other since a very long time and has witnessed an
increased commitment in recent past. Multiple engagement in fields such as bilateral trade, strategic relations,
student exchange programs, similar commitments towards sustainable development has made this relationship all
the more dynamic. As the global momentum is markedly shifting towards the Indo-Pacific region it becomes
imperative for both the nations to stand in unison and provide the stability the region desires owing to the over-
indulging nature of China. Recently, India and Australia moved closer to closing in on the Logistics Support
Agreement (LSA).
Logistics Support Agreement (LSA):
The LSA will be one of the key agenda points during Prime Minister Morrison’s visit.
The Agreement will allow the two countries to use each other’s military bases for logistics support, including
food, water, and petroleum.
India-Australia bilateral relations:
Economic and trade relationship
The India-Australia economic relationship has grown significantly in recent years. India’s growing economic
profile and commercial relevance to the Australian economy is recognized, both at the federal and state level
in Australia.
India’s exports to Australia stood approximately at US$ 4.6 billion (A$6.1 bn) in 2016 while India’s import
from Australia during the same period stood at US$ 11 billion (A$14.6 bn).
India’s main exports to Australia are Passenger Motor Vehicle & machinery, Pearls, Gems and Jewellery,
Medicaments and Refined Petroleum while India’s major imports are Coal, Non-monetary Gold, Copper,
Wool, Fertilizers and Education related services.
India-Australia also has a Joint Ministerial Commission (JMC) which was established in 1989 to enable
interaction at a government and business level on a broad range of trade and investment related issues.
The two countries are currently discussing a Comprehensive Economic Cooperation Agreement (CECA)
which will provide greater market access to exporters of goods and services. The two sides have exchanged
their goods and services offer lists.
Strategic: The Quad:
For Australia in 2007 therefore, to begin embroiling itself in any emerging military alliance with
Japan against China, in the absence of any formal reconciliation between Tokyo and Beijing over the
events of the Second World War (Nanking Massacre), was incompatible with our long-term national
interests.so Australia did retreat then.
However, Australia later rejoined the dialogue in 2017 on the sidelines of the ASEAN Summit, signalling a
re-ignition in Australia’s interest in the dialogue.
Defence relation:
India–Australia both borders the Indian Ocean and has a shared interest in the maintenance of freedom of
navigation and trade.

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