Australia India Comprehensive Economic Cooperation Agreement

By 12 september 2021 No Comments

The release of India`s Economic Strategy 2035 by the Australian government last year is an attempt to seize these opportunities. The strategy has set itself the goal of India becoming one of Australia`s top three export markets, making India the third largest destination in Asia for Australian foreign investment, and bringing India into the inner circle of Australian strategic partnerships. The strategy is divided into 10 sectors and 10 countries on which Australian business is expected to focus. The Indian diaspora in Australia is expected to play an important role in developing these economic ties; Highlight the importance of India`s largely prosperous population of 700,000 people in Australia. Everyone wants a piece of India lately. No surprises there! The Indian economy has become stronger and stronger. Indian Prime Minister Narendra Modi has an ambitious agenda to promote production in India, a cornerstone of his long-term economic strategy. This plan is called “Make in India” and aims to attract investment in the Indian manufacturing sector. It is essentially a replication of the export-oriented growth model, followed by different East Asian economies in the 1960s and 1970s. China is a recent example of economic growth pursued by an export-oriented strategy. However, the complication stems from India`s accession to the World Trade Organization (WTO) and the question: how will India expand its production base while remaining within the framework of the WTO? Moreover, a deep distrust of trade is an intrinsic feature of the nationalism championed by the BJP.

The party`s ideological source, the Rashtriya Swayamsevak Sangh (RSS), sees trade liberalization as a threat to Indian identity, and its economic understanding remains linked to Swadeshi`s idea of self-sufficiency through priority domestic products, made entirely from Indian production lines. The organization`s economic wing recently staged a 10-day protest against India`s participation in the Regional Economic Partnership (RCEP), a free trade framework being negotiated between the 10 ASEAN countries and Australia, China, India, Japan, South Korea and New Zealand. India`s concerns remain an obstacle for all concerned countries to reach an agreement (talks are expected to resume on 1 November). It has been more than eight years since Australia and India opened negotiations for a free trade agreement known as the Australia-India Economic Cooperation Agreement. . . .