India and Australia Relations UPSC

India-Australia Relations

Background of India Australia Relations:

• During the cold war period, Australia was United States’ closestally, while India opted for non-alignment. 
• The end of the Cold War and launch major economic reforms in 1991 provided the first positive move towards development of closer ties between two nations. 
• This could not last long as India’s nuclear status outside the nuclear Non-Proliferation Treaty (NPT) resulted in Australia taking a particularly strong stance against India’s 1998 nuclear tests. 
• In 21st century, with the changing global scenario, Australia looked at India as an important partner in promoting regional security and stability. 
• This led to up gradation of bilateral relationship to a ‘Strategic Partnership’, including a Joint Declaration on Security Cooperation in 2009. 

Economic and commercial relations of India Australia:

• Bilateral goods and services trade between two was $30.3 billion in 2018-19, and the level of two-way investment was $30.7 billion in 2018. 
• In 2018, Australia announced implementation of “An India Economic Strategy to 2035”, a vision document to shape India- Australia bilateral ties. India is also preparing an Australia Economic Strategy Paper (AES) on similar lines. 
• Two countries have decided to re-engage talks on a Comprehensive Economic Cooperation Agreement (CECA) (Talks started in 2011, last being in 2015). 

Defence and security cooperation of India Australia:

• Civil Nuclear Cooperation Agreement was signed 2014 between two, enabling India to secure uranium from Australia. o Both also signed Mutual Legal Assistance Treaty (MLAT), Extradition Treaty and the Social Security Agreement. 
• Maritime Security cooperation is seen in the form of joint exercises like AUSINDEX 2019, AUSTRAHIND, Exercise Pitch Black and Kakadu biennial exercise (Hosted by the Australian Navy).

Science and Tech India Australia Relations:

• An Australia-India Strategic Research Fund was established in 2006 for scientists to collaborate on leading-edge research. 
• Agreement on Cyber and Cyber-Enabled Critical Technology was signed recently to promote cooperation in the areas of digital economy, cyber security, critical and emerging technologies. 

Global cooperation:

• Chinese aggression and assertive foreign policy are common concerns and has brought both the democracies closer. 
• Both have shared interests in vision of a free, open, inclusive and rules-based Indo-Pacific region. 
• Australia’s Pacific Step Up and India’s Forum for India-Pacific Islands Cooperation (FIPIC) reaffirm their cooperation in the South Pacific region. 
• Both co-operate in various multilateral fora including QUAD security dialogue, Indian Ocean Rim Association (IORA), ASEAN Regional Forum, G-20, East Asia Summits etc. 

People to People India Australia Relations:

• Indian diaspora, estimated at nearly 7 lakh is the fastest growing in Australia and has become positive factor in bilateral relations. 
• Almost 1 lakh Indian students enrolled for studying in Australia. Under New Colombo Plan (which aims at increasing exchange in the Indo-Pacific region) of Australian government, Australian undergraduates have studied and completed internships in India. 
• Australia agreed to help in establishing a world class Sports University in India.

Some concerns in India-Australia relations 

• Comprehensive Economic Cooperation Agreement (CECA) still remains inconclusive after 9 rounds of negotiations. 

• India opted out from Regional Comprehensive Economic Partnership (RCEP). Among other things, India and Australia could not agree regarding market access over agriculture and dairy products. 

• Australia’s economy is heavily dependent on China, with China being Australia's largest trading partner, accounting for 26 % of its trade with the world.