India is key to Australia’s trade diversification policy: Don Farrell

I wouldn’t be surprised if we can meet these targets. So, the two-way trade is close to $46 billion. Already, we are seeing the first evidence of the free trade agreement coming into force, with the two consecutive reductions in tariffs. In January, $2.5 billion in trade from Australia came into India under lower tariffs. Now, I think certainly from our point of view, this gives us great opportunities to expand our relationship. India sends the largest or second largest tourists into Australia, and Indian students are the second largest set of students coming into Australia. India has now, I think, become the largest migrant group coming into Australia. Both countries have decided that diversification is the way of the future. We have in abundance critical minerals, hydrogen, things that decarbonise your economy, and all of that put together, demonstrates that there are great opportunities.

Yes, and I think, there will be reverse of investments by Indian companies into Australia. We have seen that the Adani Group has invested very heavily into the Carmicheal coal mine in Queensland. I think, there are regulatory synergies between the two countries, both are democratic countries, we have both the same type of English judicial system, we are both committed to peace in the Indo-Pacific and are working very hard in that regard. I think, all elements are there for a long-term sustainable relationship, which will then allow the confidence you need to do the investment.

India is a key feature of Australia’s trade diversification policy. We have learnt the hard way to not put all eggs in one basket and we are very committed to building that relationship with India. I am confident that whether it gets to a stage of being as big of a relationship as we had with China, it is going to be one of our key markets in the future. It is going to be a good news story for both countries. We are a trading nation, we are an island. We have to trade to make a living, this is the way we lift our living standards, and for the workers in Australia, the living wage rises. We think that the same will happen in India.

Today we have got the 25 largest companies in Australia with all of their CEOs here in Mumbai. I have got the indication that they have got the message that they have to engage with India. It is not easy, but we haven’t devoted enough time and resources in the past in our relationship, but I have detected a change. I think the momentum is building from the Prime Minister’s visit, from my visit, from the Resources Minister’s visit. I think the opportunities are there in a way, that they haven’t been before. We are in the post-Covid world, we have a brand new agreement, we have to make the most of it. 

We have been asking that we finalise that by the third quarter for this year. I am confident with the timeline, I believe there is the will on both sides.

Each side has red-lines that make it difficult to reach an agreement. Those red lines existed in previous agreements, we were able to find a way through those. With a bit of respect on both sides and a bit of understanding, we can get there and work through those problems. 

As far as I know, Adani’s operations in Australia have been unaffected by the issues that have been raised. It is a successful company operating in Australia. From our point of view, we wish them the best.

It does require your ability to explain, because you know on balance, these agreements are good for workers and they are good for companies. You have actually got to invest in explaining what the benefits are.

Critical minerals — the whole world wants our critical minerals. We want to make sure that our good friend India also gets a fair share of our critical mineral. In the digital space, India is projected to have 900 million internet users. You have got this enormous skill space really interested in developing the digital world. We want to work closely with India in this space. We also want to get high-quality products to India. From the figures I have seen, half your population will be middle class by 2030, growing in wealth and abundance. We have good food and good wine that we want to export here.