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INDIA-AUSTRALIA & NEWZEALAND image BY ATRISHEKHAR - Coggle Diagram
INDIA-AUSTRALIA & NEWZEALAND
BY ATRISHEKHAR
GEOECONOMICS
● Two way FDI is $1.4 bn
ECTA slashed away duties on 96% of Indian exports and 85% of Australian exports.
Supply Chain Resilience Initiative (SCRI)
:India and Australia are partners in the trilateral arrangement along with Japan which seeks to enhance the resilience of supply chains in the Indo-Pacific Region.
Australia is the
17th largest trading partner of India
and India is Australia’s 9th largest trading partner.
Bilateral trade (in 2022): over $31 billion (India’s exports: over $10 billion and imports at $17 billion)
· Target: Both countries aim to boost bilateral trade to $100 billion by 2030
around 9.76 lakh people in Australia reported their ancestry as Indian origin, making them the second largest group of overseas-born residents in Australia.
Letter of Intent on Migration and Mobility Partnership Arrangement to foster the exchange of skills.
· Mutual Recognition of Educational Qualifications (MREQ) (2023)
· Deakin University and the University of Wollongong are planning to open foreign university campuses in India.
· Australia-India Strategic Research Fund (AISRF)
Challenges
● D/f in approach for Indo-pacific
● Asymmetric priorities
● Contrasting strategic circumstances
● Lack of mvt on trade agreements
China factor
Ties between Australia and China were strained after Canberra in 2018 banned Chinese telecom firm Huawei from the 5G network.
India has been facing an aggressive Chinese military along the border.
Later, it called for an inquiry into the origins of Covid-19, and slammed China’s human rights record in Xinjiang and Hong Kong
China responded by imposing trade barriers on Australian exports, and by cutting off all ministerial contact.
recent bonheime with china is cause of concern
recent
coperative developments
● SAIEP
● Maitri scholars
● CECA negotiations
● Eco coop & ECTA
Cultural and People-to-People Ties:
The Mechanism for Mutual Recognition of Educational Qualifications (MREQ) was signed on March 2 this year. This will facilitate mobility of students between India and Australia. Deakin University and University of Wollongong are planning to open campuses in India
Maitri Grants Program: This program has scaled up, funding impactful projects that enhance people-to-people connections and catalyze new economic opportunities2.
Cultural Events: High-profile cultural events, such as AR Rahman’s visit to Sydney and the South by South-West festival in Sydney, have opened new possibilities for cultural collaboration2.
Economic Cooperation:
India-Australia Economic Cooperation and Trade Agreement (ECTA): The utilization of the ECTA has deepened economic ties, and talks are underway to upgrade it to a Comprehensive Economic Cooperation Agreement (CECA)
Renewable Energy Partnership: Launched during the Australia-India Annual Leaders’ Summit in November 2024, this partnership marks a significant milestone in bilateral cooperation on renewable energy
Defense and Security:
Military Exercises: The AUSTRAHIND joint military exercise has grown in scope and complexity, with Australia sending a significantly larger contingent in 2024 compared to previous years
Strategic Dialogues: Regular high-level engagements through the bilateral 2+2 dialogue and participation in trilateral and plurilateral cooperative mechanisms have strengthened strategic alignment
Recent developments (2023–October 2025)Air-to-air refuelling and exercises: A refuelling arrangement has been operationalized to enable mutual AAR; India participated in Australia-hosted exercises and is slated for Talisman Sabre 2025, reinforcing joint readiness in the Indo-Pacific.
2025 economic roadmap: Australia’s New Roadmap for 2025 highlights nearly 50 opportunities and four high-potential sectors; India and Australia also extended programs such as AIBX to support business-to-business engagement.
Defence Ministers’ Dialogue (2025) in Canberra
Joint Maritime Security Collaboration Roadmap: Enhances coordinated maritime surveillance, domain awareness, and interoperability across the Indo-Pacific region.
Mutual Submarine Rescue Support Arrangement: Establishes a structured framework for underwater rescue operations and naval contingency management.
Air-to-Air Refuelling Agreement (2024): Strengthens tactical endurance and enables longer joint missions through shared aerial refuelling capacity.
Annual Defence Ministers’ Dialogue & Joint Staff Talks: Creates institutional continuity for defence discussions and operational planning across political tenures.
Defence Industry Roundtables: Encourages industrial linkages, co-production, and maintenance collaboration between Indian and Australian defence sectors.
India–Australia ties are at their strongest ever, driven by defence cooperation, Indo‑Pacific security, and economic integration under the Comprehensive Strategic Partnership (CSP).
India-Australia ‘2+2’ Foreign Secretaries and Defence Secretaries Dialogue: India and Australia agreed in 2015 to hold annual meetings of Foreign and Defence Secretaries (2+2) to enhance foreign policy and security cooperation; The 3rd Dialogue was held in New Delhi on 09 December 2019.
: The 2+2 Ministerial Dialogue was held in September 2021, and the Deputy Prime Minister and Defence Minister of Australia visited in June 2022.
The Mutual Logistics Support Agreement (MLSA) was concluded during the Virtual Summit in June 2020, and the two militaries held several joint exercises in 2022.
India-Australia-Japan Trilateral Dialogue: The inaugural Secretary-level trilateral talks between India, Australia and Japan was held in New Delhi in June 2015. The second Foreign Secretary level trilateral talks were held in Tokyo on 26 February 2016 and the third took place in Canberra on 29 April 2017. The 4th India-Australia-Japan Trilateral Dialogue was held in New Delhi on 13 December 2017.
Indonesia-Australia-India Trilateral Dialogue: The 1st Indonesia-Australia-India Senior Officials’ Strategic Dialogue was held in Bogor, Indonesia on 27th November 2017. The second dialogue in Canberra on September 21, 2018 and the 3rd in New Delhi on 19 November 2019.
Australia will host military operations with India, Japan, and the US in the “Malabar” exercises off the coast of Perth in August, and has invited India to join the Talisman Sabre exercises later this year
The two-way Prime Ministerial visits in 2014 built significant momentum in the bilateral relationship, signifying deepening relations.
Major Strategic Breakthrough
Australia officially designated India as a “top‑tier security partner” and its most important defence partner in the Northeast Indian Ocean in its National Defence Strategy 2026 (released mid‑April).
Canberra committed to expanding the depth, complexity, and frequency of joint military engagements, intelligence sharing, and maritime domain awareness with India. [rnamedia.in]
Why this mattersThis is Australia’s clearest acknowledgement yet of India’s central role in Indian Ocean security and balancing China’s influence.
Diplomatic & Economic Pillars
India and Australia complete annual Prime Minister‑level summits, 2+2 Foreign & Defence Minister dialogues, and cooperate closely in Quad, G20, and Indo‑Pacific forums.
The India–Australia Economic Cooperation and Trade Agreement (ECTA) continues to expand trade, education, and critical minerals collaboration.
BACKGROUND
Australia and India for the first time established diplomatic relations in the pre-Independence period, when the
Consulate General of India was first opened as a Trade Office in Sydney in 1941.
India-Australia relations touched a historic low when the Australian Government condemned India’s
1998 nuclear tests.
In 2014, Australia signed a
Uranium supply deal with India, the first of its kind with a country that is a non-signatory to the Nuclear Non-Proliferation Treaty,
in recognition of India’s “impeccable” non-proliferation record.
Shared values of pluralistic, Westminster-style democracies, Commonwealth traditions,
expanding economic engagement, and increasing high-level interaction have underpinned the India-Australia bilateral relationship.
Common traits, including strong, vibrant, secular, and multicultural democracies, a free press, an independent judicial system, and English language, serve as the foundation for closer co-operation.
The India-Australia bilateral relationship has been underpinned by the shared values of pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic engagement, and increasing high-level interaction.
GEOPOLITICAL
Both are members of the
Quad, Commonwealth, Indian Ocean Rim Association (IORA), ASEAN Regional Forum, Asia Pacific Partnership on Climate and Clean Development, and have participated in the East Asia Summits
.
Both countries have also been cooperating as members of the
Five Interested Parties (FIP) in the World Trade Organization context.
Australia is an important player in
Asia Pacific Economic Cooperation (APEC) and supports India's membership of the organizati
on.
To celebrate India at 75, the Australian government illuminated more than 40 buildings across the country, and Prime Minister
The countries signed a Letter of Intent on New and Renewable Energy in 2022 which provides for cooperation towards
bringing down the cost of renewable energy technologies
, especially ultra low-cost solar and clean hydrogen.
During the Virtual Summit in 2022, India announced matching funds of AUD 10 million for Pacific Island Countries under Infrastructure for Resilient Island States (IRIS) and of AUD 10 million for Pacific Island Countries under International Solar Alliance (ISA).
“At the heart of this contest is genuine respect, reflecting the affection and friendship between our peoples…On the field, Australia and India are competing to be the best in the world. Off the field, we are co-operating to build a better world,” Albanese, the first leader of his country to make a bilateral visit to India since Malcolm Turnbull in 2017 (during 2023 visit)
DEFENCE
Engagement between the Royal Australian Navy and the Indian Navy has advanced significantly through the key bilateral exercise, AUSINDEX.
The Information Fusion Centre
India has been invited to join the Talisman Sabre exercises in 2023.
Australia will host the "Malabar" exercises in August 2023, with participation from India, Japan, and the US.
The Mutual Logistics Support Agreement (MLSA) was signed during the Virtual Summit in June 2020 to enhance defence cooperation.
The 2+2 Ministerial Dialogue took place in September 2021, and the Deputy Prime Minister and Defence Minister of Australia visited India in June 2022.
For the first time, the Indian Air Force participated in Exercise Pitch Black in Darwin in 2018.
Defence & Maritime Cooperation (Ongoing)
Regular high‑end naval exercises such as AUSINDEX, with a strong focus on anti‑submarine warfare (ASW).
Growing coast guard‑to‑coast guard cooperation to address piracy, illegal fishing, and grey‑zone activities. [thediplomat.com]
INDIA -NEWZEALND
India–New Zealand Free Trade Agreement
Challenges Associated with the FTA:
Domestic political opposition in New Zealand: Sections of New Zealand’s ruling coalition oppose the pact, citing immigration pressures and dairy-sector disadvantages.
Low trade base: Given the relatively small existing trade volume, economic gains may accrue gradually rather than immediately.
Non-tariff barriers: Divergent regulatory standards, certification norms, and SPS requirements may continue to constrain exports.
Implementation capacity: The agreement’s success depends on how effectively MSMEs and service providers utilise its provisions.
Agricultural sensitivities: Concerns from farmer groups, especially in dairy and horticulture, restrict deeper liberalisation and require careful policy calibration.
Existing Trade Between India and New Zealand:
Trade volume: Bilateral trade reached USD 1.3 billion in FY25, registering a strong 49% year-on-year growth, yet remains modest relative to the economic size of both countries.
Indian exports: India’s exports are concentrated in pharmaceuticals, textiles, engineering goods, and IT/IT-enabled services, reflecting strengths in manufacturing and knowledge-based sectors.
Indian imports: Imports from New Zealand largely consist of wool, fruits, forestry products, and dairy-related items, highlighting New Zealand’s comparative advantage in agriculture.
Trade imbalance: The trade structure is asymmetrical, with New Zealand exporting agri-products and India exporting manufactured goods and services, limiting value-chain integration.
Untapped potential: Despite economic complementarities, trade remains below potential due to tariff barriers, regulatory constraints, and limited business awareness.
Trade expansion: Double bilateral trade from the current level to USD 5 billion within five years, deepening economic engagement.
Investment inflows: Facilitate USD 20 billion in New Zealand investments over 15 years, aligned with Make in India.
fta 2025
India–New Zealand Free Trade Agreement (FTA): Historic Milestone
FTA to be formally signed on 27 April 2026 in New Delhi, after legal verification was completed.
This is New Zealand’s first comprehensive trade agreement with India. [rnz.co.nz], [newindianexpress.com]
💼 Key Features of the FTA
India:
Zero‑duty access on 100% of Indian exports to New Zealand.
New Zealand:
Tariff elimination or reduction on 95% of exports to India (sheep meat, wool, coal, forestry products, fruits, wine).
Sensitive sectors (e.g., Indian dairy, edible oils) are excluded to protect farmers.
Services & Mobility:
Temporary work visas for ≈5,000 Indian skilled professionals per year (up to 3 years).
Target: Double bilateral trade to USD 5 billion in 5 years and attract ≈USD 20 billion investment over 15 years
Defence
Institutionalized Partnership: Signed MoU for enhanced military cooperation.
Naval Cooperation: Naval visits of INS Sahyadri and INS Kolkata in 2023 & INSV Tarini in 2024; India’s participation in Combined Maritime Forces.
Security Concerns Addressed: China’s expansionism and Khalistani separatist threats.
Joint Task Force: India contributes staff to Combined Task Force 150, led by RNZ Navy (Jan 2025).
Counterterrorism CooperationJoint Condemnation of Terrorism: Referred to the 2019 Christchurch and 2008 Mumbai attacks.
Against Extremism: Commitment to counter terrorist financing & dismantling terror networks.
Constraints in India-NZ Defence Alignment
China Dependence: NZ’s deep China trade ties limit strategic alignment with India.
Low Continuity: Defence ties remain episodic, relying on leadership over institutional continuity.
Alliance Boundaries: NZ’s Five Eyes role and Pacific neutrality constrain Indo-Pacific convergence.
Cultural Relations
Indian Diaspora in NZ: ~250,000 people, third-largest ethnic group.
Education and Mobility: India is 2nd largest source of international students in NZ (~8,000 students) in the academic fields of IT, hospitality, science, engineering, and architecture.
Cultural Engagements: Indian festivals (Diwali, Holi, Baisakhi, Onam) are widely celebrated.
Arts: NZ schools teach Indian dance forms (Kathak, Bharatnatyam), Bollywood dance & Hindi language.
Sports Collaboration: Celebrating 100 years of sporting ties in 2026, promoting player exchanges.
Tourism and Cultural Ties: Strengthening cooperation in tourism and cultural initiatives.
Mountaineering Legacy: Sir Edmund Hillary, an NZ hero, is iconic in India for his Everest expedition.
Historical Linkages
Early Indian Settlers: Migrated to Christchurch in the 1850s.
Military Cooperation: Indian troops fought alongside ANZACs (Australian and New Zealand Army Corps) in the Gallipoli Campaign (1915).
Diplomatic Ties: Established in 1950, evolving into a High Commission later.
Common Interests: Shared democratic values, Commonwealth membership, and legal frameworks.
Tourism and Sports: Cricket, hockey, and mountaineering have fostered goodwill.
Strategic Engagement: New Zealand’s “Opening Doors to India” policy (2011) and “India-NZ 2025 – Investing in the Relationship” strategy (2020) aim to strengthen long-term ties.
