India recently approved US$1.88 billion investment to develop its critical minerals sector by exploring partnerships with Zambia, the Democratic Republic of Congo, and Australia.
Aust-India Trade Relations: June 2024 Trade Data: India’s exports to Australia reached US$873 million, while imports from Australia totaled US$1.13 billion, resulting in a trade deficit of US$253 million for India. Notably, both exports and imports saw declines compared to June 2023, attributed to reduced shipments of petroleum products, agrochemicals, and motor vehicles.
Overall Trade Growth: In the calendar year 2023, two-way trade between India and Australia surged to US$1.1 trillion, a 38% increase from pre-pandemic levels, underscoring the strengthening trade relationship.
Investment Dynamics: Foreign Direct Investment (FDI): Between April 2000 and June 2024, India received approximately US$695 billion in FDI. In the April-June 2024 quarter alone, FDI inflows exceeded US$16 billion, marking a 48% year-over-year increase. cii.in
Total Investment Volume: As of 2022, India’s total investment in Australia amounted to $34.5 billion, while Australia’s investment in India was $17.6 billion. dfat.gov.au
Key Investment Sectors: Energy and Resources: These investments and collaborations highlight the growing interest and active participation of Indian companies in Australia’s renewable energy sector, contributing to the global transition towards sustainable energy sources.
Since 2004, Suzlon Energy has been a significant player in Australia’s wind energy market, at one point holding a 30% market share. As of recent years, it maintains approximately a 17% share, reflecting its ongoing commitment to renewable energy in the region. In August 2023, Reliance Industries entered into an agreement with Brookfield Asset Management to explore manufacturing renewable energy and decarbonization equipment in Australia. This collaboration aims to establish operations for producing and assembling renewable energy equipment, enhancing the renewable energy supply chain between the two countries.
Energy Exemplar, an Australian company, collaborates with Indian businesses to model future energy scenarios and accelerate the adoption of renewable energy. Their software assists in planning optimal energy mixes and evaluating long-term strategies for integrating renewable energy into existing grids.
Bilateral Trade Agreements: The Australia-India Economic Cooperation & Trade Agreement (ECTA) has significantly enhanced trade, leading to a 35% increase in exports to India in 2023.
