Australia Woos India for Free Trade Deal, Energy in Forefront

Australian Trade and Investment Minster Andrew Robb confirmed last week that Canberra and New Delhi are aiming to conclude their trade negotiations this year, noting on Friday that bilateral trade ties with India are currently “closer than ever.”

The remarks, made during a week-long promotional campaign in India to highlight trade opportunities between the two countries, come after a year that saw Australia finish up major trade negotiations with three other Asian countries – China, Japan, and South Korea, respectively.

Negotiations with New Delhi have been underway since May 2011. The two countries exchanged A$15.2 billion (US$12.5 billion, at current exchange rates) in bilateral trade in 2013, a nearly three-fold increase from 2003 levels, according to Australian government data.

As India’s population begins to surpass that of China, one of its top priorities in trading with Australia is energy. The Modi government has made ensuring energy security for the Asian subcontinent a priority, particularly given that two-thirds of the country’s 1.2 billion population lack electricity access.

Some analysts have suggested that these factors could make an Australia-India deal even more lucrative than Canberra’s pact with Beijing.

China’s bilateral trade with Australia hit A$160 billion last year, ten times that of Australia’s trade with India.