India's economic growth to drive Australian export: RBA

Australia's Reserve Bank has said that Indian economic growth will continue to work in favour of the country's mineral exporters.

Reserve Bank of Australia (RBA) said Indian economy has gradually strengthened over the past two decades and the Asian nation will continue to improve in the years ahead, The Australian daily reported.

"The Indian economy looks likely to continue to expand at a relative rapid pace in coming decades and to become an increasingly important part of the world economy," the daily quoted the bank as saying. 

RBA had released its quarterly statement on monetary policy yesterday.

The central bank said the rise in India's prominence in the global economy has been a boost to the Australian economy.

"Indian demand for Australia's exports has risen sharply, with particularly rapid growth over the past decade," it said, adding that, "this has seen India's share in Australia's total exports increase to around 6.5 per cent, a four-fold increase in less than a decade.""

As per the official data, "India was Australia's fourth largest export market in the second half of 2009."

RBA said coal exports to India has risen strongly over the past decade is likely to rise in the next few years. It accounted for 40 per cent of total goods exports to India in 2008-09.

Liquefied natural gas (LNG) is another likely source of future growth in Australia's good exports to India.