The Comprehensive Economic Cooperation Agreement (CECA) with Australia, negotiations for which are underway and expected to be finalised during this year, will be a game changer for India-Australia trade ties, according to Steven Ciobo, Parliamentary Secretary to the Minister for Foreign Affairs, Australia.

Interacting with industrialists at a meeting hosted by CII Telangana and Andhra Pradesh on Thursday, Ciobo said Indian Prime Minister Narendra Modi and Australian Prime Minister Tony Abbott have set aggressive target for signing the CECA covering goods, services and investment.

He said Australia is keen to be part of the ‘Make in India’ campaign as it would help global supply chains and support competitive products. The two-way investments and FDIs could get better with the agreement.

The bilateral trade between India and Australia, estimated at $15 billion, has immense potential to expand. The trade between Australia and China at $160 billion shows the potential for growth with India. A mutually beneficial CECA would unlock this potential, he said.

More trade and investment fuels growth and creates jobs. Australia has concluded Free Trade Agreements with China, Japan and South Korea. And when India signs up the CECA, Australian resources for India’s energy security would also play a role in the long term.

The IT services sector could get a further boost and be useful for Australian companies like the ANZ Grindlays Bank office in Bangalore, where more than 7,000 people work.

Being the number one exporter for coal, iron ore and heading towards No.1 slot for LNG, Australia could provide greater access to mining capabilities too.

India’s plan to develop 100 new smart cities and several infrastructure projects require huge resources and Australian companies can share their expertise in developing infrastructure, Ciobo said.

Mutual investments and strengthening of economies would be beneficial for both, he said.

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