India - Australia relations can be traced back to late 18th Century and early 19th Century with shipments of coal from Sydney to Calcutta. This was followed by export of horses from New South Wales. Later, more diversified trade ties developed between the two countries. Full diplomatic relations between our two countries are much more recent but still date back to more than 50 years. The pre-cursor of Consulate-General of India first opened in Sydney as the Trade Office in 1941. The first Indian High Commissioner reached Canberra in 1946.
India and Australia share much in common. Both countries are members of the Commonwealth, have similar institutions of parliamentary democracy, legal, financial and government institutions, free and vibrant press, speak the same language and are Indian Ocean littoral States. We are active members of the Indian Ocean Rim - Association for Regional Cooperation, ASEAN Regional Forum and dialogue partners with ASEAN.
The bilateral relationship continued to develop over the years. Prime Minister Rajiv Gandhi visited Australia in 1986. A return visit was paid by Prime Minister Hawke in 1989. Relations developed steadily, through the 1990’s, until the nuclear tests by India in 1998. However, after a brief dip, bilateral exchanges resumed, and became more active from 2000 onwards, following Prime Minister John Howard’s visit in July that year.
The visit of an Australian Prime Minister opened a new phase in bilateral relations. This visit was followed by a series of Minister-level visits and substantive discussions between the two Governments.
The most recent was the visit of Mr. Yashwant Sinha, former External Affairs Minister in August 2003 for the Foreign Minister’s Framework Dialogue. This was followed by the visit of Mr Ashton Calvert, Secretary in the Australian Foreign Ministry in March 2004 for the Strategic Dialogue. Considering the interaction in the past two and a half years bilateral relations between our two countries are poised to be raised to a new level. India and Australia have committed themselves to a co-ordinated international approach in overcoming the challenges posed by terrorism. We have similar approaches to many of the other pressing issues of our times.
India-Australia cooperation has made rapid strides in many areas. There are also official agreements and institutionalised mechanisms to promote bilateral cooperation such as Avoidance of Double Taxation Agreement, Bilateral Investment Promotion and Protection Agreement, an MOU for Cooperation in IT, an MOU on Tourism and an MOU on Cultural Heritage Cooperation. India and Australia signed an MOU on Counter-terrorism in August 2003 and an MOU on Science & Technology in October 2003. This close interaction has been reflected in our trade relations though there is considerable untapped potential.
Australia’s investment in India is approximately A$1 billion and has slipped from its position as 7th largest cumulative investor in India. Considering the opportunities that exist, particularly in areas where Australia has expertise and India considers as priority sectors, there is need for a more active economic relationship.
Indian investment in Australia, too, is growing. There are already over 20 Indian IT companies which have offices in Australia. Satyam Computers have set up a development centre in Sydney while Tata Consultancy Services, Infosys and Birlasoft have set up similar centres in Melbourne. Indian companies have acquired copper mines in Tasmania, and Pacific Paints in Brisbane. Tata Iron and Steel Company and Oswal Group are pursuing investment proposals in Queensland and Western Australia while State Bank of India has opened a branch office in Sydney. The total Indian investment in Australia is over A$ 2 billion.
The Joint Ministerial Commission and the Joint Business Council meeting last took place in New Delhi in February, 2003. The Federal Minister for Trade, the Hon. Mark Vaile led the Australian delegation. The next meeting is scheduled to take place in Australia in 2004..
Interaction at the people-to-people level is also increasing. The number of tourists visiting each others’ countries is increasing. Australia has also become one of the important destinations for Indian students seeking higher education. These students fit in well, by and large, in Australia and take back with them a rich experience.
The Indian diaspora in Australia, a professional and respected group, with their commitment to Australia and cultural and family links with India, provides an important bridge between our two countries. Visits of Indian cultural troupes, singers, painters, as also of film crews for the shooting of dance & song sequences, television serials and special effects for Indian films have also increased.
Interaction at all levels - political, official, academic, business and cultural - has now resumed with increased dynamism reinvigorating our overall relationship.