In an effort to overcome the recent strain in relations on the issue of security to Indian students, Australian trade commission launched roadshows in 12 cities to create greater awareness about the conducive atmosphere for studying Down Under. The two countries are also trying to increase trade.
“The present status of two-way trade and its volume, stood at $20.9 billion with export volume tilting very much in its favour,” Peter Varghese, the Australian high commissioner in New Delhi said. “An free trade agreement (FTA) between the two countries has the potential to enhance trade in goods, services and investment,” said the Australian envoy.
The FTA with Australia will provide India access to markets in East Asia, allowing it to counterbalance the growth of strategic and economic rivals such as China, said a commerce ministry official. China is negotiating a comprehensive FTA with Australia. If signed, the agreement will give Chinese firms an edge over their Indian rivals. “We are committed to further strengthening and expanding our strategic partnership. Our relationship already encompasses diverse areas that can act as building blocks for such a partnership.”
He said India-Australia joint ministerial group meeting will be held soon and added that a CEOs Forum meeting will be made to coincide with it. “The bilateral economic relationship has continued to strengthen. India is now Australia’s third largest overall export market and fifth largest trade partner. Australia is India’s sixth largest trading partner. There were significant new two-way investments in 2010, particularly by India, in the resources and energy sector.”
By maintaining around 25% increase annually, the trade volumes are expected to touch the $25-billion mark in 2011. In 2010, Australian investment in India touched the $3-billion mark, of which about $278 million was invested in various infrastructural projects, besides energy, agriculture, food processing, mining and educational sectors.
Both countries are now focused on expanding cooperation in areas such as trade & economic cooperation, energy & resources, education, science & technology.
“A lot of Australian companies are involved in the Indian mining sector. Statistics provided by the Directorate General of Commercial Intelligence and Statistics until the first three quarters of the financial year 2009-10 shows Australia as India’s eighth largest goods trade partner. With bilateral trade amounting to $9.7 billion for the period, Australia accounted for about 3% of India’s total goods trade.”
The balance in bilateral goods trade is in Australia’s favour. The imbalance in India-Australia trade is hardly surprising. Coal accounts for more than 45 % of India’s total imports from Australia. Semi-manufactured non-monetary gold is another vital import. Taken together, coal and gold comprise more than 85% of India’s annual imports from Australia.
Import of coal from Australia is only going to increase as Indian industry continues to grow. Increased industrial activity will raise demand for electricity and with most power plants being coal-fired thermal units, initial estimates indicate that coal imports might increase to 50 million tonnes (mt) during financial year 2010-11, against 28 mt in the previous fiscal.
Most Indian private power producers are finding imported coal an easier option instead of sourcing it domestically. And as for gold, it is unlikely imports of the precious metal will decline, given India’s insatiable domestic demand. Going by the Sterlite Industries’ acquisition of a Queensland gold mine and copper mines in Tasmania, Australia may be a happy hunting ground for India’s gold and mineral prospectors.
There is growing Indian investment in Australia’s mining & resources sector. Indian companies are increasingly investing & exploring investment opportunities in Australia to secure resources & raw material supply to meet the shortfall in domestic production.
Indian companies have invested in copper and coal mines in Australia and are exploring more investment opportunities in the mining & resources sector.
India’s mining and resource processing companies have already identified the benefits in that country, both through the establishment of long-term supply contracts and direct investment in Australia’s expertise, high quality deposits and competitive transportation costs. Together, the two countries have put in place mechanisms to further reinforce commercial and technical ties.
For example, Tata’s investment in Geodynamics is developing one of the three Australian projects to create the first commercial-scale hot rock geothermal energy project in the world. Recently, India’s biggest coal importer Adani Enterprises acquired an Australian coal asset of Linc Energy in a cash and royalty A$ 2.7-billion deal. This is succeeded by an array of companies, including CESC, Reliance Power and GMR Power, exploring investments there.
“The present status of two-way trade and its volume, stood at $20.9 billion with export volume tilting very much in its favour,” Peter Varghese, the Australian high commissioner in New Delhi said. “An free trade agreement (FTA) between the two countries has the potential to enhance trade in goods, services and investment,” said the Australian envoy.
The FTA with Australia will provide India access to markets in East Asia, allowing it to counterbalance the growth of strategic and economic rivals such as China, said a commerce ministry official. China is negotiating a comprehensive FTA with Australia. If signed, the agreement will give Chinese firms an edge over their Indian rivals. “We are committed to further strengthening and expanding our strategic partnership. Our relationship already encompasses diverse areas that can act as building blocks for such a partnership.”
He said India-Australia joint ministerial group meeting will be held soon and added that a CEOs Forum meeting will be made to coincide with it. “The bilateral economic relationship has continued to strengthen. India is now Australia’s third largest overall export market and fifth largest trade partner. Australia is India’s sixth largest trading partner. There were significant new two-way investments in 2010, particularly by India, in the resources and energy sector.”
By maintaining around 25% increase annually, the trade volumes are expected to touch the $25-billion mark in 2011. In 2010, Australian investment in India touched the $3-billion mark, of which about $278 million was invested in various infrastructural projects, besides energy, agriculture, food processing, mining and educational sectors.
Both countries are now focused on expanding cooperation in areas such as trade & economic cooperation, energy & resources, education, science & technology.
“A lot of Australian companies are involved in the Indian mining sector. Statistics provided by the Directorate General of Commercial Intelligence and Statistics until the first three quarters of the financial year 2009-10 shows Australia as India’s eighth largest goods trade partner. With bilateral trade amounting to $9.7 billion for the period, Australia accounted for about 3% of India’s total goods trade.”
The balance in bilateral goods trade is in Australia’s favour. The imbalance in India-Australia trade is hardly surprising. Coal accounts for more than 45 % of India’s total imports from Australia. Semi-manufactured non-monetary gold is another vital import. Taken together, coal and gold comprise more than 85% of India’s annual imports from Australia.
Import of coal from Australia is only going to increase as Indian industry continues to grow. Increased industrial activity will raise demand for electricity and with most power plants being coal-fired thermal units, initial estimates indicate that coal imports might increase to 50 million tonnes (mt) during financial year 2010-11, against 28 mt in the previous fiscal.
Most Indian private power producers are finding imported coal an easier option instead of sourcing it domestically. And as for gold, it is unlikely imports of the precious metal will decline, given India’s insatiable domestic demand. Going by the Sterlite Industries’ acquisition of a Queensland gold mine and copper mines in Tasmania, Australia may be a happy hunting ground for India’s gold and mineral prospectors.
There is growing Indian investment in Australia’s mining & resources sector. Indian companies are increasingly investing & exploring investment opportunities in Australia to secure resources & raw material supply to meet the shortfall in domestic production.
Indian companies have invested in copper and coal mines in Australia and are exploring more investment opportunities in the mining & resources sector.
India’s mining and resource processing companies have already identified the benefits in that country, both through the establishment of long-term supply contracts and direct investment in Australia’s expertise, high quality deposits and competitive transportation costs. Together, the two countries have put in place mechanisms to further reinforce commercial and technical ties.
For example, Tata’s investment in Geodynamics is developing one of the three Australian projects to create the first commercial-scale hot rock geothermal energy project in the world. Recently, India’s biggest coal importer Adani Enterprises acquired an Australian coal asset of Linc Energy in a cash and royalty A$ 2.7-billion deal. This is succeeded by an array of companies, including CESC, Reliance Power and GMR Power, exploring investments there.
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