India and Australia have shared a long-standing relationship since India established its trade office in Sydney in 1941. Over the years, the bilateral relationship between the two countries has evolved and strengthened in several areas. In 2009, India and Australia upgraded their diplomatic ties to a Strategic Partnership, which was further elevated to a Comprehensive Strategic Partnership in 2020.
The recent meeting between the two countries discussed several key areas of cooperation, including a comprehensive trade deal, a migration pact, and ways to boost defense cooperation. The meeting also saw the signing of MoUs on cooperation in sports and audio-visual co-production and the exchange of terms of reference for the Solar Taskforce.
Economic Cooperation
India and Australia have been working towards enhancing their economic cooperation over the years. The Economic Cooperation Trade Agreement (ECTA) came into force in December 2022, resulting in a 0% duty on almost 96% of Indian exports to Australia. The bilateral trade between the two countries was around US$ 27.5 billion in 2021, with India having a trade deficit.
Defense Cooperation
India and Australia have also been strengthening their defense cooperation, which has been a critical area of engagement. The two countries have held several joint military exercises like Malabar and AUSINDEX. The 2+2 Ministerial Dialogue and the Mutual Logistics Support Agreement (MLSA) are some of the significant initiatives taken in this regard.
Clean Energy
India and Australia have also been working together to promote clean energy. In 2022, the two countries signed a Letter of Intent on New and Renewable Energy, along with a Civil Nuclear Cooperation Agreement and cooperation under the International Solar Alliance (ISA).
People-to-People Ties
People-to-people ties have been another important aspect of the India-Australia relationship. India is one of the top sources of skilled immigrants in Australia, and the Mechanism for Mutual Recognition of Educational Qualifications (MREQ) signed recently will further facilitate the movement of skilled labor between the two countries.
MCQs on India-Australia Relations: Strengthening Bilateral Cooperation.
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What is the current status of the India-Australia relationship?
A. Diplomatic Partnership
B. Strategic Partnership
C. Comprehensive Strategic Partnership
D. Bilateral Partnership
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Which of the following agreements was signed between India and Australia in 2022?
A. Economic Cooperation Trade Agreement (ECTA)
B. Mechanism for Mutual Recognition of Educational Qualifications (MREQ)
C. Letter of Intent on New and Renewable Energy
D. Mutual Logistics Support Agreement (MLSA)
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What is the current status of the bilateral trade between India and Australia?
A. India has a trade surplus with Australia
B. India has a trade deficit with Australia
C. There is no trade between India and Australia
D. Bilateral trade is evenly balanced
