Batting for better ties with Australia

The relationship between India and Australia started with the humble camel. In 1893, India began sending camels to the Australian outback, assisting with transport and construction.

Some years later, Australia began exporting coal to the subcontinent, forging a path that almost 125 years later has grown into a $12 billion annual bilateral trading relationship.

This week, we are pleased to be co-chairing the revitalised Australia-India CEO Forum after Australian Prime Minister Tony Abbott and Indian Prime Minister Narendra Modi both expressed a commitment to strengthening bilateral strategic partnerships.

Our key focus will be to shine a spotlight on how to create ways to generate jobs, investment and economic growth.

This can be done through fast-tracking investment approval processes in both India and Australia and implementing economic and regulatory reforms. The Indian government’s introduction of legislation to support a single GST and its increase in FDI caps in the insurance, defence and railways sectors is a step forward.

The meeting in Delhi this week will focus on generating closer business ties and preparing the ground for the proposed Australia-India Comprehensive Economic Cooperation Agreement (CECA). The CECA will deliver new market opportunities, streamline the process to do business, drive growth, create new jobs and generate prosperity for India and Australia. It will increase investment flows in both directions and lower downward pressure on the price of business inputs and consumer goods.

So how can the CECA help the man on the street in India and Australia? Australia’s minister for trade and investment, Andrew Robb, has often cited the example of the dairy industry. A dairy cow in India produces on average five litres of milk a day. A dairy cow in Australia typically produces 25 litres of milk a day. By providing advice in crop management, water management, genetics and processing, Australia can help India increase production. If we extend this concept across the agricultural sector, it would mean know-how and partnerships that could boost India’s efforts to ensure food security

Competitively priced stable supplies of Australian minerals and resources will contribute to India’s energy security and infrastructure development. Two-way investment and timely government approvals in this sector will open new opportunities for growth.

Institutional investment also has a key role to play in facilitating infrastructure development in both countries and we support the Indian government’s commitment to increased government spending and a new National Investment and Infrastructure Fund to leverage private finance using government capital. There is little doubt that Indian investors would welcome greater support from Australian banks to invest in India.

India’s future growth relies on a skilled workforce and education and ongoing skills development will be critical to this outcome. Australia is already supporting the upskilling of India’s workforce through Australia’s world-class vocational education and training capabilities.

We would encourage the Australian and Indian government commitment to increase cooperation across schooling, higher education and the vocational education sectors. We support mutual recognition of qualification and natural movement of people to encourage skilled labour mobility between our two countries.

The Australia-India Education Council in advancing education, training and research partnerships and strong ties between universities and partnerships between India’s Sector Skills Council and Australia’s Industry Skills Councils in key industry areas.

As the CECA talks gain momentum, both governments should know that the business communities of Australia and India are prepared to be active flag-bearers of the bilateral relations between the two nations if the right agreement can be secured.

Walsh is the chief executive of Rio Tinto. Adani is chairman of the Adani Group. They are co-chairs of the Australia-India CEO Forum

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