The Hindu Business Line : India, Australia to step up bilateral trade, investment flows

EXPANDING TIES: The Union Minister for Commerce and Industry, Mr Kamal Nath, flanked by the Australian Minister for Trade, Mr Warren Truss, and the FICCI President, Mr H.F. Khorakiwala, at an India-Australia Joint Business Council meeting in the Capital. — Kamal Narang

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New Delhi March 1 India and Australia have resolved to step up bilateral trade and investment flows substantially, while taking due note of the increasingly diverse and considerably large nature of the bilateral trade and economic relationship.

This is indicated in the agreed minutes of the 10th India-Australia Joint Ministerial Commission (JMC) meeting, which were signed here on Wednesday night by the Union Commerce & Industry Minister, Mr Kamal Nath, and the Minister for Trade of Australia, Mr Warren Truss, who is heading the largest-ever business delegation to India.

Both the Ministers voiced satisfaction at the rapid spurt in bilateral goods and services trade between India and Australia and the significant increase in the commercial presence of Indian and Australian companies in each other's markets. Indo-Australian trade registered a record increase from just $1.4 billion in 200-01 to $5.7 billion in 2005-06. Of this, India's exports to Australia were valued at 0.8 billion and Australia's exports to India were $4.9 billion.

Hailing India's emergence as Australia's fastest growing trading partner, Mr Truss said, "India is the new kid on the block and everyone is interested." Mr Kamal Nath invited Australian companies to invest in India particularly in mining, farm and education sector.

The meeting also took note of the immense potential for investment flows between the two countries. India and Australia also agreed to promote bilateral investment, including in the energy, mining, infrastructure, food processing, telecom, information and communications technology, tourism, biotechnology and financial sectors.

While India shared information about steps taken by it to ease foreign direct investment regulation including sectoral caps and simplification of procedures, Australia informed New Delhi of the establishment of Invest Australia offices in both Mumbai and New Delhi to enable Indian investment into Australia, an official release issued here said.