Australia Supports India’s Growth and UN Seat

Source: The post Australia Supports India’s Growth and UN Seat has been created, based on the article “Australia, the partner for India’s growth trajectory” published in “The Hindu” on 4th March 2025.

UPSC Syllabus Topic: GS Paper2- International Relations-Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Context: The article talks about Australia’s belief in India’s economic growth and supports India’s UN Security Council seat. It highlights a new Roadmap to boost ties through trade, clean energy, education, and more, using shared strengths and the Indian diaspora.

For detailed information on India-Australia relations read this article here

Why Does Australia Believe in India’s Economic Growth?

1. Economic Projection: Australia predicts India will be the third largest economy by 2030, indicating significant economic potential.
2. UN Security Council Support: Australia backs India’s bid for a UN Security Council seat, recognizing its growing global influence.
3. Complementary Economies: The two countries’ economies are interlinked; Australia produces critical resources like lithium, nickel, and cobalt, essential for India’s burgeoning electric vehicle sector.
4. Trade Growth: India’s exports to Australia have increased by 66% over the past five years, nearly double the growth rate of its global exports, demonstrating robust economic engagement.

What Is the New Roadmap for Australia-India Economic Ties?

1. Introduction of the Roadmap: Australian Prime Minister Anthony Albanese launched the new Roadmap for Australia’s Economic Engagement with India. It aims to enhance bilateral relations based on mutual economic interests.
2. Focus Areas: The Roadmap identifies four main sectors for growth: clean energy, education and skills, agribusiness, and tourism.
3. Additional Sectors: It also highlights seven more sectors for collaboration: investment, technology, sports, culture and arts, resources, defence, space, and health.
4. Trade Growth: Since the 2018 economic strategy and the signing of the ECTA, India’s exports to Australia have grown by 66%, compared to a 35% increase to the world.

How Are Trade Relations Between India and Australia Growing?

1. Trade relations between India and Australia have grown significantly, underpinned by the Economic Cooperation and Trade Agreement (ECTA).
2. Over the past five years, India’s exports to Australia have increased by 66%, which is nearly double the global growth rate of India’s exports at 35%.
3. This growth rate highlights the successful economic integration and mutual benefits derived from the ECTA.

How Is the Indian Diaspora Strengthening Ties?

1. The Indian diaspora in Australia, which numbers over 10 lakh people, plays a crucial role in enhancing bilateral relations between the two countries.
2. Australia recognizes the value of this ‘human bridge’ and is investing ₹22 crore into the Maitri grants program to leverage the diaspora’s potential for creating business opportunities and deepening mutual understanding.
3. The establishment of the Centre for Australia India Relations, supported with ₹132 crore from the Australian government, is led by eminent Australians of Indian origin, further strengthening ties.

Question for practice:

Evaluate how the Roadmap for Australia’s Economic Engagement with India plans to utilize the strengths of the Indian diaspora to enhance bilateral relations.