India–Australia Relations

Latest Context

Prime Minister Narendra Modi’s third visit to Australia comes nearly three years after the Comprehensive Strategic Partnership (CSP) of 2020. The visit evaluates whether the relationship, often described as operating in “T20 mode” (high-level strategic cooperation), has translated into concrete outcomes across trade, defence, energy, education, technology, and people-to-people ties.

Evolution of India–Australia Relations

India and Australia have transformed their relationship from a limited engagement to a Comprehensive Strategic Partnership (CSP) in 2020. Today, both countries cooperate across trade, defence, critical minerals, maritime security, clean energy, education, and emerging technologies, driven by shared democratic values and common interests in ensuring a free, open, inclusive, and rules-based Indo-Pacific.

Trade and Investment: The Anchor of Bilateral Relations

Economic Cooperation and Trade Agreement (ECTA)

The India–Australia Economic Cooperation and Trade Agreement (ECTA), which entered into force in December 2022, has significantly strengthened bilateral economic ties. Under the agreement, all Indian exports receive duty-free access to the Australian market, benefiting sectors such as textiles, pharmaceuticals, engineering goods, chemicals, gems, and jewellery.

In return, India has provided preferential tariff access covering nearly 90% of Australia's trade value, particularly for products such as critical minerals, wool, avocados, and macadamia nuts.

Trade Target

Both countries have set an ambitious target of increasing bilateral trade from nearly US$33 billion in 2025 to US$100 billion by 2030, making Australia one of India's most important economic partners in the Indo-Pacific.

Investment Cooperation

Two-way investments have reached nearly US$50 billion, reflecting growing investor confidence.

Australian company AirTrunk has announced an investment of around US$30 billion for establishing AI-ready data centres in India.

Conversely, Indian company Perdaman Chemicals is constructing Australia's largest urea plant, worth US$4.5 billion, with over 98% of the engineering modules manufactured in India, demonstrating an emerging reverse manufacturing partnership.

Defence and Maritime Security

Growing Strategic Partnership

Defence cooperation has become one of the fastest-growing pillars of India–Australia relations. Both countries have institutionalised tri-service military exchanges, strengthened interoperability, and expanded cooperation in the Indo-Pacific maritime domain.

Joint Military Exercises

India and Australia regularly participate in major bilateral and multilateral exercises, including AUSINDEX, Malabar, and Talisman Sabre, enhancing cooperation in naval operations, anti-submarine warfare, maritime surveillance, and humanitarian assistance.

Mutual Logistics Support Agreement (MLSA)

The Mutual Logistics Support Agreement (MLSA) enables reciprocal access to each other's military bases, logistics facilities, fuel, maintenance, and supplies. It significantly improves operational reach, maritime domain awareness, and interoperability.

2+2 Ministerial Dialogue

The India–Australia 2+2 Ministerial Dialogue brings together the Foreign and Defence Ministers of both countries every two years to strengthen cooperation in strategic affairs, regional security, defence policy, and Indo-Pacific stability.

Emerging Defence Technologies

Cooperation is expanding into cybersecurity, Artificial Intelligence (AI), autonomous systems, drones, and defence manufacturing, complementing India's growing shipbuilding capabilities.

Energy Cooperation

Renewable Energy Partnership

Both countries have established a Solar Taskforce and a Green Hydrogen Task Force to deepen cooperation in renewable energy, clean technologies, critical minerals, battery manufacturing, and rooftop solar systems.

Critical Minerals

Australia is one of the world's largest suppliers of lithium, cobalt, nickel, and rare earth minerals, which are essential for electric vehicles, renewable energy storage, and semiconductor manufacturing. These minerals are becoming a cornerstone of bilateral cooperation.

Civil Nuclear Cooperation

The implementation of the Civil Nuclear Cooperation Agreement is expected to facilitate Australian uranium exports to India, strengthening India's clean energy transition and nuclear power programme.

Education and Skill Development

Education has become another major pillar of bilateral relations.

More than one lakh Indian students pursue higher education in Australia, making Indians one of the largest international student communities.

Following recent policy reforms, several Australian universities have established campuses in India, promoting academic collaboration and internationalisation of higher education.

Joint research initiatives cover advanced computing, healthcare, biotechnology, artificial intelligence, quantum technologies, and space science.

Both countries are also cooperating in vocational education and skill development, particularly in solar energy, mining technologies, and advanced manufacturing, benefiting states such as Gujarat, Uttar Pradesh, and Odisha.

Science, Technology and Innovation

India and Australia are strengthening cooperation in critical technologies, including Artificial Intelligence, quantum computing, semiconductors, cyber security, biotechnology, and space technology.

The Australia–Canada–India Technology and Innovation Partnership, launched in 2025, seeks to strengthen collaboration in innovation ecosystems and emerging technologies.

People-to-People Relations

Indian Diaspora

The Indian diaspora in Australia, numbering over one million people, serves as a strong "living bridge" connecting the two countries through business, education, culture, and innovation.

Sports Cooperation

The 2030 Commonwealth Games and the 2032 Brisbane Olympics provide opportunities for cooperation in sports science, athlete training, sports medicine, and infrastructure development.

Traditional Indian sports such as Kabaddi and Kho-Kho are also gaining popularity in Australia, enhancing India's cultural soft power.

Regional and Multilateral Cooperation

• India and Australia work closely in several regional and global forums.

• They are key members of the Quadrilateral Security Dialogue (Quad), promoting a free, open, and inclusive Indo-Pacific.

• Both countries also cooperate through the Indian Ocean Rim Association (IORA), the Supply Chain Resilience Initiative (SCRI) with Japan, and various minilateral groupings involving France, Indonesia, Canada, and Pacific Island nations.

• These initiatives seek to strengthen critical mineral supply chains, semiconductor resilience, maritime security, disaster management, and regional connectivity, while reducing excessive dependence on concentrated global supply chains.

Challenges in Bilateral Relations

• Although bilateral relations have expanded rapidly, several challenges remain.

• Many strategic initiatives continue to remain at the level of political announcements rather than legally binding agreements.

• The civil nuclear cooperation, particularly uranium exports, has progressed slowly despite political commitment.

• Employment-related mobility and visa pathways remain underutilised despite existing frameworks.

• Several recently launched technology partnerships are yet to produce measurable outcomes.

• Another concern is that the momentum in bilateral relations has been driven significantly by strong leadership-level engagement, making long-term institutional continuity an important priority.

Way Forward

• India and Australia should convert existing understandings into time-bound implementation agreements, particularly in critical minerals, civil nuclear cooperation, technology partnerships, and skill mobility.

• Defence cooperation should increasingly focus on joint research, co-development, and defence manufacturing, rather than military exercises alone.

• Institutional mechanisms should be strengthened to improve labour mobility, academic exchanges, technology collaboration, and investment facilitation.

• Both countries should also deepen cooperation in critical supply chains, green energy, semiconductor manufacturing, maritime security, and Indo-Pacific governance, ensuring long-term strategic resilience.

Conclusion

India–Australia relations have evolved into a comprehensive, multi-dimensional strategic partnership anchored in trade, defence, clean energy, education, technology, and maritime cooperation. Shared concerns over supply-chain resilience, critical minerals, and Indo-Pacific security have further strengthened bilateral engagement. Going forward, sustained progress will depend on institutionalising commitments, accelerating implementation, and translating strategic intent into tangible outcomes, thereby making the partnership more resilient, predictable, and future-ready.