In a bid to boost relations, Australia to invest over $280 million in India
- IBEF
- March 23, 2022
According to an official statement made by the Australian government, Australia will invest over US$ 280 million to improve cooperation with India, which will strengthen economic links and support employment and businesses in both nations.
The Australian government would invest an additional US$ 16.6 million to develop ties with India's main policy and financial institutions, and US$ 8.9 million to promote expanded business engagement and a larger Austrade (Australian Trade and Investment Commission) presence in India. This will be part of the 'Update to India's Economic Strategy to 2035’, which aims to make India into one of Australia’s top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment.
To continue supporting a world-class relationship and develop a 'Innovation and Technology Challenge,' Australia committed US$ 17.2 million to prolong the Australia-India Strategic Research Fund.
Aside from that, the country pledged US$ 35.7 million to a green steel collaboration, a key minerals research partnership, and a donation to the International Energy Agency to encourage cooperation on clean technology research, production, and commercialization.
Both countries established a 30-day deadline last month to finalise the early harvest agreement (EHA) before finalising a full-fledged free trade pact. The agreement is anticipated to be finalised and announced before the end of the March.
In 2020, India was Australia’s seventh-largest trading partner, with two-way trade valued at US$ 24.3 billion, and sixth largest goods and services export market, valued at US$ 16.9 billion. In 2020, India was Australia’s third-largest market for services exports.
In FY21, Australia was India's 15th-largest trading partner.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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