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Picture Courtesy: THE HINDU
India and Australia have deepened their Comprehensive Strategic Partnership (CSP) through the inaugural Defence Ministers’ Dialogue held in Canberra on October 9, 2025.
Information Sharing Agreement
Facilitates secure and timely exchange of classified operational data — vital for interoperability in joint operations.
MoU on Submarine Search and Rescue
Operationalises the Implementing Arrangement on Mutual Submarine Rescue Support and Cooperation, allowing both navies to assist each other in emergencies.
Maritime Collaboration
Launch of a Joint Maritime Security Collaboration Roadmap — to strengthen coordination in the Indian Ocean Region (IOR).
India to join Australia’s “Black Carillon” submarine rescue exercise; Australia to continue in Talisman Sabre, Austrahind, and Puk Puk exercises.
Defence Industry & Technology
Announcement of Australia’s first Defence Trade Mission to India. India to provide maintenance and repair facilities for Australian Navy ships.
Collaboration in AI, unmanned systems, and secure communication under the Joint Working Group on Defence Industry, Research and Materiel.
Strategic and Regional Implications
Both reaffirmed commitment to a free, open, and rules-based Indo-Pacific, with commitment to United Nations Convention on the Law of the Sea (UNCLOS) and freedom of navigation — signaling a united front against coercive maritime behaviour.
Early Period (Pre-2000s)
After India’s independence in 1947, India and Australia had formal diplomatic relations but limited strategic engagement.
India’s non-alignment policy differed with Australia’s alignment with the West (especially the USA).
Events like India’s 1998 nuclear tests caused diplomatic strain (sanctions, critical reactions) from Australia.
Slow cooperation (2000s-2010s)
As global politics shifted, both nations emphasised trade, educational ties, diaspora links.
In 2014 Australia agreed to supply uranium to India under certain conditions.
Strategic Deepening (2020 to 2025)
In 2020, the relationship was elevated to a Comprehensive Strategic Partnership (CSP). The Australia-India Economic Cooperation & Trade Agreement (ECTA) signed in 2022.
Regular high-level institutional mechanisms like the 2+2 Ministerial Dialogue (Foreign & Defence Ministers) got stronger. Defence cooperation increased: new exercises, mutual logistics, surveillance, etc.
In October 2025, India and Australia signed three defence agreements to deepen information sharing, maritime security, and joint military activity.
Strategic Partner in the Indo-Pacific
As two major democratic powers in the Indo-Pacific, India and Australia share a vision for a "free, open, inclusive, and rules-based" region.
Australia is a key partner in the Quadrilateral Security Dialogue (Quad), which is central to India's strategy to ensure regional stability and counter China's growing assertiveness.
Economic and Trade Opportunities
The bilateral trade between India and Australia in FY25 stood at $ 24.1 billion; India exported $8.58 billion, and imported $15.52 billion. (Source: IBEF)
Major exports to Australia include petroleum products, engineering goods, Drugs and Pharmaceuticals, textiles and apparels, and gems and jewelry.
Australia occupies the 25th position in FDI equity inflows into India with a cumulative FDI amount of $1,52 billion from April 2000-March 2025. (Source: IBEF)
Critical Minerals and Energy Security
Australia supplies mineral fuels, ores, etc., vital for the energy industry in India. It possesses vast reserves of critical minerals like lithium, cobalt, and rare earth elements, which are essential for India's goals in renewable energy, EV manufacturing, and high-tech industries.
Diaspora
Indian diaspora in Australia, numbering nearly 1 million, acts as a powerful "living bridge", facilitating deep people-to-people connections. (Source": DD NEWS)
Act East and Indo-Pacific Vision
Australia is central to India’s "Act East" policy and its vision of SAGAR (Security and Growth for All in the Region). India sees Australia as a natural partner in building a stable and prosperous Indo-Pacific.
Multi-Alignment and Issue-Based Coalitions
India engages with Australia as part of its strategy of multi-alignment, where it builds issue-based coalitions with like-minded partners rather than entering into rigid alliances. The Quad is a prime example of this approach.
Economic Diversification
India views Australia as a key partner in its efforts to build resilient supply chains and reduce its economic dependence on China.
Defence and Security
Joint military exercises like Malabar (with Quad partners), AUSINDEX (naval), and AustraHind (army). Operationalization of the Mutual Logistics Support Arrangement (MLSA) for enhanced maritime cooperation. Intelligence sharing on maritime security and counter-terrorism.
Economic and Trade
The ECTA has reduced tariffs, boosting trade in goods and services. Both countries are now negotiating a more ambitious Comprehensive Economic Cooperation Agreement (CECA).
Critical Minerals
The Australia-India Critical Minerals Investment Partnership aims to secure the supply of essential minerals for India's manufacturing sector.
Clean Energy
Both nations are collaborating on renewable energy technologies, particularly green hydrogen, under initiatives like the Quad Climate Working Group.
Education and People-to-People Ties
The Australia-India Education and Skills Council serves as the primary forum for cooperation in education and skill development.
Trade Imbalances & Sectoral Frictions
India has a trade deficit with Australia. Despite the ECTA, Indian exporters still face non-tariff barriers in Australia, such as complex sanitary and phytosanitary (SPS) standards for agricultural products.
Asymmetric Strategic Priorities
While both share concerns about China, their primary threat perceptions differ. Australia, a formal US ally and member of AUKUS, is focused on maritime security in the South China Sea and the Pacific Islands. India's primary security challenges lie along its land borders.
Capacity Constraints in India
To fully leverage the critical minerals partnership, India needs to rapidly build its domestic processing technology and infrastructure, which requires investment and time.
Geographical Challenges in Defence Coordination
India’s landmass and Australia’s geographic location mean joint operations require high logistics cost, long supply lines. For example, submarine rescue or maritime domain awareness across vast areas is technically and logistically demanding.
Political & Human Rights Issues
Sometimes Australia raises concerns about human rights, democratic norms in India in public discourse; India sees some Australian regulatory or immigration policies (e.g. regarding diaspora) as sensitive. These occasionally raise friction.
Finalise CECA (Comprehensive Economic Cooperation Agreement)
ECTA has been helpful but has limits. CECA should address services trade, digital trade, investment protection, regulatory harmonisation, and ease non-tariff barriers.
Invest Jointly in Defence Industry & Innovation
Establish jointly owned / co-produced defence-industrial projects (ships, surveillance systems etc.). Joint R&D centres, technology transfer agreements, shared manufacturing supply chains will make cooperation sustainable.
Enhance Operational Interoperability
More combined exercises (land, air, sea), drills in real conditions; refine logistics and agreements for port access, refuelling, maintenance (e.g. Indian shipyards servicing Australian vessels). Recent agreements on submarine rescue, joint staff talks are good steps.
Build a Joint Industrial Base
Move beyond the buyer-seller model for critical minerals. Establish joint ventures for mineral processing and battery manufacturing plants in India to create a truly resilient and integrated supply chain.
Collaborate on Regional Leadership
Jointly invest in infrastructure and climate resilience projects in Southeast Asia and the Pacific Islands to offer a credible, transparent alternative to China's Belt and Road Initiative.
Deepen Maritime Domain Awareness & Undersea Surveillance
Given the strategic importance of the Indian Ocean and South Pacific, better undersea, satellite, drone-based surveillance, and information sharing will help. Joint research (for example, on autonomous underwater vehicles) should be scaled up.
Manage China Risk Smartly
Align deterrence and diplomacy: While enhancing defence cooperation, continue trade diversification and risk mitigation so neither country is overly vulnerable in case geopolitical tension rises.
Improve Implementation & Monitoring
Agreements are only useful if implemented well. India and Australia should set up joint monitoring mechanisms (e.g. for ECTA implementation, export/import utilization, defence pacts) to track, resolve issues (regulatory, infrastructure, capacity shortfalls).
India–Australia ties have evolved into a results-driven partnership grounded in trust, shared values, and strategic convergence. Sustained commitment to balanced trade, defence collaboration, and capacity-building can transform this partnership into a key stabilising pillar of the Indo-Pacific region.
Source: THE HINDU
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PRACTICE QUESTION Q. The '2+2 Ministerial Dialogue' is a format of meeting between India and which of the following countries? 1. United States 2. Australia 3. Japan 4. Russia Select the correct answer using the code given below: A) 1 and 3 only B) 1, 2 and 3 only C) 2 and 4 only D) 1, 2, 3 and 4 Answer: D Explanation: The '2+2 Ministerial Dialogue' is a high-level strategic dialogue format where the foreign and defence ministers of two countries meet. India has this mechanism with all four of its major strategic partners: the United States, Australia, Japan, and Russia. |
The Maitri initiatives are a suite of programs administered by the Centre for Australia-India Relations (CAIR) to boost cultural, educational, and community ties. This includes the Maitri Scholarships Program, which supports high-achieving Indian students studying at Australian universities.
The India-Australia ECTA is a free trade agreement that came into effect in 2022. It aims to promote deeper economic integration by reducing tariffs on goods and promoting trade in services, benefiting sectors like textiles, chemicals, agriculture, and IT.
Launched by Australia, India, and Japan, the SCRI aims to reduce over-reliance on single markets and diversify supply chains. This initiative strengthens economic stability and resilience in the Indo-Pacific region in the face of disruptions.
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