Budget confirms India poised to enter a “big two” of Australia’s global relationships – call for business response

By Chris Mooney, Chairman, Australia India Chamber of Commerce

The gradual shift of Australia’s foreign and trade relations towards India has been given a big boost with this week’s Australian budget, providing the funds for the creation of the Centre for Australia-India Relations.

India is now likely to be among our “big two” of our global partners, joining the USA.

For 30 years we have had the Australia India Council – one of multiple nation councils operated under Department of Foreign Affairs and Trade. This new CAIR replaces that council and has an unprecedented level of funding expected to balance out at around A$28 million per annum.

The AICC now calls on the business community to respond and provide substantial funding for business to work alongside the CAIR. The government is showing the importance of this relationship – the Australian business community now needs to demonstrate its financial and resources commitment to Australia-India ties.

Chris Mooney said: “By creating the CAIR, the government is stepping up the India relationship. It is now time for the Australian business community to take a giant step up too. We will all benefit.

“We have to stand up alongside the government or be swamped by the global rush to India.

“With India assuming Presidency of the G20 from December 1 this year, the next twelve months is the time for all levels of engagement with India”.

He pointed to areas where the AICC was actively involved in the relationship – including defence, critical minerals, education, tourism and healthcare, among others.

The CAIR has a government mandate to strengthen business and diaspora ties and we think business should play a financial role in support – with the aim of promoting greater awareness and understanding of the growing India market, building business literacy and supporting new business partnerships.

In 2020 the Indian-born population became Australia’s second-largest group of overseas-born residents. The Centre will work with our diaspora communities to support broader bilateral engagement with India.

The Centre will also administer over $20 million in Maitri (friendship) initiatives, including a scholars program, a grants and fellowship program and a cultural partnership. The Maitri Scholars Program will attract and support high achieving Indian students to study at Australian universities, while the Maitri Grants and Fellowships Program will build links between our future leaders, supporting mid-career Australian and Indian professionals collaborate on strategic research and shared priorities. The Maitri Cultural Partnership will boost the role of creative industries in our economic and people-to-people ties.

A first priority of the CAIR should be to establish a workable approach to engagement with the Indian diaspora in Australia – one of our great assets.

Location of the CAIR itself in this “virtual” era is less of an issue than having the ability to reach out effectively and engage the Indian diaspora.

This year is a record one for India-Australia engagement:

·???????Active members of the QUAD (Australia, India, Japan and USA)

·???????Over 6 Indian ministers have visited

·???????Trilateral connections via Australia-India-France and Australia-India-Japan supply chains

·???????Increases in all levels of the defence and strategic relationship

·???????Signing of AI-ECTA trade agreement in April