Australian push on India ties likely, but with hurdles

Subject

Australian policy thinking on India.

Significance

A blueprint submitted to the Australian government in April, titled 'An India Economic Strategy to 2035', calls for increased export shipments and investment in India through to 2035 and a closer strategic and diplomatic relationship.

Impacts

• Economic relations will evolve slowly, as India is still developing a business structure attractive to foreign investment.
• Talks on a free trade agreement are unlikely to progress until India agrees to lower market barriers, especially high tariffs.
• India’s 700,000-strong diaspora in Australia will play a long-term role in connecting markets in the two countries.