IES Update Launch - Mumbai
Thursday, 7 April 2022 | Four Seasons Hotel, Mumbai
(check against delivery)
Good evening.
Ambassador Wadhwa, distinguished guests, ladies and gentlemen.
It’s wonderful to be here in Mumbai for the India launch of the Update to Australia’s India Economic Strategy.
We mark the occasion with relations between Australia and India at a high point.
Indeed, I think it’s fair to say that the past few weeks alone will be remembered as a watershed for the bilateral relationship.
New commitments and practical initiatives have been announced by both governments to grow our bilateral economic, trade and investment partnership.
Last week, our Prime Ministers met for a Virtual Summit and committed to doing so annually – making Australia only one of three countries to have such an arrangement with India.
They reaffirmed the strong bond between our two countries and reiterated their commitment to driving the Australia-India Comprehensive Strategic Partnership to new heights.
Last weekend, our Prime Ministers – along with Ministers Goyal and Tehan — met again virtually. This time to conclude the Australia-India Economic Cooperation and Trade Agreement, or ECTA – which, as many of you know, means “unity” in Hindi.
I can’t overstate just how significant a development this is for the relationship.
Indian consumers and businesses will benefit from the immediate elimination of tariffs on 85 per cent of Australian goods exports to India.
While Australian consumers will benefit from almost 96 per cent of Indian goods imports entering Australia duty free.
And tonight, we‘re formally launching Australia’s India Economic Strategy Update.
This Update is a call to action for government and business.
It includes a five-year plan for the Australian Government to help achieve its long-term economic ambitions with India. And it is a clear signal of our strong ongoing commitment to the relationship.
It draws on consultations with over 600 business and community stakeholders across Australia and India and sets a basis for new investment.
To implement the plan, Australia is investing over $280 million – that’s INR 1,500 crore – towards new programs and initiatives across technology, space, critical minerals, strategic research and people-to-people links to boost cooperation with India.
This is the largest ever single boost to bilateral ties by an Australian Government.
The original India Economic Strategy, released in 2018, argued that no country would offer more growth opportunities to Australian business than India. And while this has not changed, the world has – considerably.
This Update responds to those changes – recognising the evolving challenges and opportunities for both countries.
It takes into account the transformed global environment, including the lessons learned during COVID, India’s economic reform agenda and our joint progress under our Comprehensive Strategic Partnership.
And it of course builds on the insights from the Confederation of Indian Industry’s landmark Australia Economic Strategy – authored by my friend and a tireless advocate of the relationship, Ambassador Wadhwa, who joins us this evening.
India and Australia have complementary economies. And our partnership is vital as we both strive for stronger, sustainable economic growth, and more secure and diversified trade and supply chains.
As democracies we know a strong economy underpins our future and the living standards and opportunities available to our citizens.
Working towards that goal, the Update maintains the momentum built since the launch of the original India Economic Strategy.
The Update
It lays out a practical plan for future economic integration between Australia and India and also acts as a marker of our recent progress.
The Update reaffirms support for Australia’s traditional strengths — education, resources, agribusiness, tourism and information technology — that will remain central to our economic ties with India.
And importantly, it gives an impetus to investment and cooperation in emerging and strategic sectors, such as low emissions technologies, cyber and critical technologies, innovation and space – all of which underpin both countries’ future prosperity and security.
Initiatives and Programs
The Update is a valuable addition to the Australia-India trade and investment story. It outlines – in detail – Australia’s many economic, strategic and diplomatic initiatives.
We are already moving quickly to implement its recommendations – the signing of the Australia-India Economic Cooperation and Trade Agreement being just the latest example.
The new initiatives contained within the Update cover the breadth of our shared priorities: across economic, trade, agriculture, infrastructure, culture, education & skills, public administration & governance, resources & energy, science & innovation, defence, cyber and critical technology interests.
They include:
- expansion of our diplomatic presence across India;
- establishment of a joint Australia-India Centre of Excellence for Critical and Emerging Technology Policy;
- a substantial commitment by Australia to build our cooperation in space – an area of great interest to India’s Minister for Space;
- an investment boost for the Australia India Strategic Research Fund;
- support for increased research, production and commercialisation of renewable energy technologies; and
- front-row access for Indian investment in Australian lithium and cobalt – underpinning secure clean energy supply chains across the Indo-Pacific.
Importantly it also includes Australian Government investment in a new Centre for Australia-India Relations to propel and strengthen our community, institutional and business ties.
The Centre will administer the suite of Maitri scholarships and fellowships, as well as a new cultural partnership.
As I noted earlier this week, these scholarships and fellowships are designed to be as generous and high-profile as the Rhodes or Fulbright programs – but offered exclusively to Indian citizens by the Australian Government.
These are just a few of the exciting new initiatives that we are committed to delivering.
Maharashtra
Of course, Maharashtra – and Mumbai – will be central to the success of this action plan.
The state has consistently made up the lion’s share of India’s total FDI inflows, and in 2020-21 ranked second among India’s states in attracting investment.
It has world class education and research institutions in Pune, a vibrant arts scene, infrastructure being developed at rapid pace across Mumbai and, all of you —businesses excited by the opportunity in the relationship.
Conclusion
Despite all our progress in the economic relationship, this Update shows that we’re not resting on our laurels.
The fundamentals are solid and we’re adapting our plan where and when needed.
A few weeks ago, Minister Tehan noted at the Australian launch of the Update that he hoped this would not be the last advancement of Australia’s economic strategy with India. He expressed the hope it would remain a work in progress.
While we continue to make inroads, there remains an ocean of opportunity yet to be explored and developed.
Companies such as yours – Australian companies in India or Indian companies with close links to Australia – are already here and playing a vital role. Boosting business links, demonstrating India’s potential and proving what is possible.
You are blazing the trail for others.
The Update reaffirms our belief that our shared values, shared circumstances and shared aspirations will strengthen our partnership in the years to come.
The success of the Australia-India relationship sets the backdrop for greater cooperation in our regional neighbourhood, where every nation can prosper.
Australia knows that in India we have a trusted, natural partner. Our diplomatic and trade network across the country, propelled by the Update, will continue working to ensure that India too, sees a similar friend in Australia.
Together, I know we’ll continue to realise the promise of this economic relationship.