India Australia Merchandise trade more than doubles India EXIM Bank MD
India’s merchandise trade with Australia more than doubled from US$10.7 billion in 2020 to nearly US$23 billion in 2021, with both exports and imports registering a record high of 7 .5 billion US dollars and 15.2 billion US dollars respectively.
India’s exports to Australia have also seen an upturn recently, said Harsha Bangari, Managing Director of India Exim Bank, during a speech at the Exim Bank’s seminar on “India-Australia: evolution of the trade and investment paradigm”.
It should be noted that the India-Australia Economic and Trade Cooperation Agreement (ECTA) is India’s first trade agreement with a developed country after more than a decade. The agreement encompasses cooperation across the full range of bilateral, economic and trade agreements.
Australia, as we all know, is a highly developed free market economy, with growth driven by strong export expansion, a strong service sector and an effective governance structure that has enabled a stable and transparent.
With a GDP of approximately US$1.7 trillion, Australia is home to just 0.3% of the world’s population, but accounts for 1.6% of the global economy. With the economy and international borders reopening, Australia’s GDP is expected to rebound and grow by 3.5% in 2021.
The synergies enjoyed by India and Australia provide the basis for closer cooperation and multidimensional interaction. Historically, India and Australia have enjoyed strong and cordial relations. New Delhi and Canberra have realigned their interests, and these relationships are only expected to multiply in the years to come. With the changing global scenario, Australia has come to view India as an important partner in promoting regional security and stability.
With the increased commitment of the governments of our countries, the prospects for trade and investment between India and Australia look extremely bright and have multiplied in recent years, propelled by the many complementarities between the two economies.
Australia, being an important bilateral and economic partner for India, there remains immense scope to strengthen this mutually rewarding partnership, not only for the benefit of India and Australia, but also for sustained development. and common in the Indo-Pacific region.
According to the India Exim Bank research study which will be published shortly and made available to all on our website, there is significant potential to improve India’s exports to Australia, based on Australia’s huge import demand and India’s global export capacity.
The study also highlights the huge opportunities that exist for business investment in key sectors of the Australian economy. Australia is an attractive destination for foreign investment and one of the easiest places in the world to start a business. Immense opportunities exist in sectors such as renewable energy, critical mineral exploration, infrastructure and agro-industrial technologies, which are also sectors promoted by the Australian government.