 "Narendra Modi in US, Scott Morrison")
Australia will invest over $280 million to boost cooperation with India, which will further bolster economic relations and support jobs and businesses in both the countries, according to an official statement released by the Australian government.
The Australian government will provide additional investment worth $16.6 million to strengthen linkages with India’s key policy and finance institutions and $8.9 million to support enhanced business engagement and an increased Austrade presence in India. This will be a part of the ‘Update to the India Economic Strategy to 2035’ launched on Tuesday.
“India and Australia share common values, complementary economies and strong people-to-people links that make us ideal partners. Our partnership with India is vital as we both strive for stronger, sustainable economic growth and more secure and diversified trade and investment patterns and supply chains,” Minister for Trade, Tourism and Investment Dan Tehan said.
“The government remains committed to the India Economic Strategy and its ambitious goals: to lift India into our top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment,” Tehan was quoted in the release as saying.
In 2020, India was Australia’s seventh largest trading partner, with two-way trade valued at $24.3 billion, and sixth largest goods and services export market, valued at $16.9 billion. In 2020, India was Australia’s third largest market for services exports.
For India, Australia was the15th largest trading partner in FY21.
The statement comes against the backdrop of Prime Minister Narendra Modi and Scott Morrison’s virtual meeting on Monday, where Australia committed $17.2 million to extend the Australia-India Strategic Research Fund to continue supporting a world-class relationship and establish an ‘Innovation and Technology Challenge’.
Apart from that the country committed $35.7 million for a green steel partnership, a critical minerals research partnership, and a contribution to the international energy agency to support cooperation on research, production and commercialisation of clean technologies, critical minerals and energy, among others.
Last month, both nations had set up an 'aggressive’ 30-day timeline to finalise the early harvest agreement (EHA), before firming up a full fledged free trade agreement. It is learnt that the agreement is expected to be finalised and announced by month-end.
