Daily Current Affairs : 27-July-2023
The 8th India-Australia Defence Policy Talks (DPT) recently took place, highlighting the deepening ties between the two nations. India and Australia share a historical relationship that dates back to the time of European settlement in Australia. Over the years, they have progressed from diplomatic engagement to a Comprehensive Strategic Partnership (CSP) that encompasses various areas of cooperation, including economic, trade, defense, and people-to-people ties.
Historical Perspective
The roots of India-Australia relations can be traced back to the late 18th century when trade between the two countries was controlled by the British East India Company. Diplomatic relations between India and Australia were formally established with the establishment of the India Trade Office in Sydney in 1941. However, it was the end of the Cold War and India’s economic reforms in 1991 that marked a turning point in their bilateral relations, leading to the development of closer ties.
Strategic Relationship
In 2020, the bilateral relationship between Australia and India was upgraded to a Comprehensive Strategic Partnership (CSP), signifying the increasing strategic significance of their ties. The Quad Leaders’ Summit, which included India, Australia, Japan, and the USA, demonstrated their shared commitment to regional security and cooperation. The subsequent quad summits have further solidified their collaborative efforts.
Bilateral Economic and Trade Relationship
Recognizing the potential offered by India’s economic growth, the Australian Government commissioned the India Economic Strategy to 2035, aiming to unlock economic opportunities between the two nations. As part of this effort, the India-Australia Economic Cooperation and Trade Agreement (“IndAus ECTA”) was established, benefiting Indian IT companies by avoiding double taxation from the financial year 2023-24.
Bilateral Trade
India is the 9th largest trading partner of Australia, and bilateral trade in goods and services amounted to US$ 31.1 billion in 2021. India’s merchandise exports to Australia saw a significant growth of 135% between 2019 and 2021. The main exports from India to Australia include refined petroleum, medicaments, pearls & gems, jewelry, and textiles. On the other hand, India imports coal, copper ores & concentrates, natural gas, and various scrap items from Australia.
Civil Nuclear Cooperation
The Civil Nuclear Cooperation Agreement signed in 2014 allowed Australian uranium mining companies to supply uranium to India for civil use. This agreement ensured that such exports would not be hindered by domestic legal challenges regarding non-proliferation safeguards. It also paved the way for potential bilateral trade in other nuclear-related material or items for civil use.
Defence Cooperation
India and Australia have been strengthening their defense cooperation through joint military exercises and engagements. The first-ever Bilateral Maritime Exercise, AUSINDEX 15, took place in 2015, and since then, they have participated in exercises like MILAN, Exercise Pitch Black, Exercise Malabar, and Exercise KAKADU. These exercises have contributed to enhancing interoperability and mutual understanding between their armed forces.
Indian Community in Australia
The Indian community in Australia plays a crucial role in fostering people-to-people ties between the two nations. With a population of about 976,000 (as of Census 2021), India stands as the second-largest migrant group in Australia. Indian students form a significant part of the international student community in Australia, with over 89,766 students presently studying in Australian universities.
Important Points:
- The 8th India-Australia Defence Policy Talks (DPT) recently took place, showcasing the strengthening of bilateral relations.
- India and Australia have a historical relationship that dates back to the late 18th century, with trade ties established through the British East India Company.
- Diplomatic relations between India and Australia were formalized with the establishment of the India Trade Office in Sydney in 1941.
- The end of the Cold War and India’s economic reforms in 1991 marked a significant turning point, leading to the development of closer ties.
- In 2020, the bilateral relationship was upgraded to a Comprehensive Strategic Partnership (CSP), encompassing various areas of cooperation.
- The Quad Leaders’ Summit involving India, Australia, Japan, and the USA demonstrated their commitment to regional security and collaboration.
- Bilateral economic and trade relations are being promoted through the India Economic Strategy to 2035 and the India-Australia Economic Cooperation and Trade Agreement (“IndAus ECTA”).
- India is the 9th largest trading partner of Australia, with bilateral trade amounting to US$ 31.1 billion in 2021.
- The Civil Nuclear Cooperation Agreement signed in 2014 allows Australian uranium mining companies to supply uranium to India for civil use.
- Defense cooperation is being strengthened through joint military exercises, such as AUSINDEX 15, MILAN, Exercise Pitch Black, Exercise Malabar, and Exercise KAKADU.
- The Indian community in Australia plays a vital role in fostering people-to-people ties, with a population of about 976,000 (as of Census 2021) and a significant number of Indian students studying in Australian universities.
Why In News
During the 8th India-Australia Defence Policy Talks (DPT) held recently, both nations reaffirmed their commitment to bolstering military cooperation and strategic partnerships. They also discussed the implementation of joint defense projects to enhance regional security and stability in the Indo-Pacific region.
MCQs about Strengthening Indo-Australia Relations
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What milestone was achieved in India-Australia relations in 2020?
A. Upgradation to a Comprehensive Strategic Partnership (CSP)
B. Establishment of the India Trade Office in Sydney
C. Signing of the Civil Nuclear Cooperation Agreement
D. Inauguration of the Quad Leaders’ Summit
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Which of the following is the main objective of the India Economic Strategy to 2035?
A. Strengthening defense cooperation between India and Australia
B. Unlocking economic opportunities for Australia through Indian economic growth
C. Establishing a comprehensive trade agreement between India and Australia
D. Promoting cultural exchange and people-to-people ties
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What is the significance of the Civil Nuclear Cooperation Agreement between India and Australia?
A. It allows India to import uranium from Australia for military purposes.
B. It facilitates bilateral trade in other nuclear-related material for civil use.
C. It prevents Australia from exporting uranium to any other country.
D. It provides India with access to advanced military technology.
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Which joint military exercise was conducted between the Indian Army and the Australian Army in 2022?
A. AUSINDEX 15
B. Exercise Pitch Black
C. Exercise Malabar
D. AUSTRAHIND 2022
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