By R Anil Kumar
INDIA-AUSTRALIA STRONG TRADE RELATIONSHIP STRENGHTENED AFTER ECTA IMPLEMENTATION
India and Australia have a strong trade relationship that is strengthening, particularly after the implementation of the Economic Cooperation and Trade Agreement (ECTA) in 2022. India’s main exports to Australia include petroleum products, engineering goods, and pharmaceuticals, while Australia’s primary exports to India are coal, gold, and copper. Both countries are working to further deepen economic ties, with a goal of reaching $100 billion in trade by 2030.
In FY25, bilateral trade was $24.1 billion, with India’s goods exports at $8.58 billion and imports at $15.52 billion. The ECTA, which came into effect in December 2022, has accelerated trade between the two nations. Australia has provided preferential market access on 100 per cent of its tariff lines for India, including for goods like textiles, jewellery, and leather products.
India offers preferential access on over 70 per cent of its tariff lines for Australia, particularly for raw materials and intermediaries such as coal and mineral ores.
INDIA AUSTRALIA TRADE
- India exported 5,124 commodities to Australia in FY25.
India and Australia are Indo-Pacific partners with a shared vision for a resilient, inclusive, open region. In FY25, India was Australia’s 8th largest trading partner, and Australia was India’s 14th largest trading partner. Major exports to Australia include petroleum products, engineering goods, Drugs and Pharmaceuticals, textiles and apparels, and gems and jewelry.
The bilateral trade between India and Australia in FY25 stood at US$ 24.1 billion.
India’s goods exports were worth US$ 8.58 billion, and imports aggregated to US$ 15.52 billion in FY25.
Australia occupies the 25th position in FDI equity inflows into India with a cumulative FDI amount of US$ 1,52 billion from April 2000-March 2025.
- Major Exports from India to Australia
India’s export to Australia reached US$ 8.58 billion in FY25.
India exported ~4,800 commodities to Australia in FY25.
India’s major export from India to Australia include petroleum products (US$ 4.48 billion), engineering goods (US$ 1.24 billion) pharmaceutical products (US$ 469.79 million), natural and precious pearls (US$ 318.91 billion), during FY25.
- Major Imports by India from Australia
Imports from Australia to India were valued at US$ 15.52 billion during FY25.
The relationship between Australia and India has developed rapidly in recent years, particularly under the impetus of India’s far-reaching process of economic reform and the resulting rapid globalization of the Indian economy. Both countries have grown in strength and importance and made rapid strides in all areas – trade, energy and mining, science & technology, information technology, education, and defense. The year 2022-23 saw increasing depth and breadth of engagements in the bilateral, trilateral and plurilateral formats, with progress made on various initiatives including establishing new mechanisms for cooperation. In the coming years, the overall relationship between India and Australia will continue to grow and has the potential to assume greater prominence.
INDIA AUSTRALIA DEFENCE COOPERATION
India and Australia are significantly increasing their defense cooperation through agreements on maritime security, operational collaboration, and technological development. A key recent milestone was the inaugural Australia-India Defence Ministers’ Dialogue in October 2025, which resulted in new pacts and a stronger focus on joint exercises, information sharing, and military technology. Other areas of collaboration include defense industrial partnerships, cyber defense, and submarine rescue operations.
- Key areas of cooperation
Maritime Security: The countries have established a Joint Maritime Security Collaboration Roadmap and collaborate on maritime domain awareness through initiatives like the Quad.
Operational Collaboration: Cooperation is moving from strategic alignment to operational reality with agreements to enhance joint exercises, including the implementation of air-to-air refuelling and the establishment of Joint Staff Talks.
Submarine Cooperation: Agreements include implementing arrangements for mutual submarine rescue support and enhancing cooperation in the undersea domain.
Defence Industrial and Technology Partnership: Discussions are focused on defense industry collaboration, with initiatives like joint working groups on industry, research, and materiel. Both countries are also looking to collaborate on modern technologies like autonomous systems and secure communications.
Information and Cyber Security: There is a growing emphasis on expanded information sharing and cooperation in cyber defense.
Logistics: The Mutual Logistics Support Agreement (MLSA) facilitates complex military engagements and humanitarian responses by allowing for reciprocal use of military facilities and supplies.
- Recent developments
Inaugural Defence Ministers’ Dialogue: Held in October 2025, this meeting solidified new agreements and marked a new phase of cooperation focused on operational collaboration.
Annual Defence Ministers’ Dialogue: The inaugural dialogue led to the establishment of an annual meeting to review and strengthen bilateral defense cooperation.
Defence Industry Collaboration: Recent events like Australia’s first defence trade mission to India and the India Pavilion at Australia’s Land Forces Expo reflect the growing bilateral defence industry relationship
INDIA-AUSTRALIA SPACE COLLABORATION
- India-Australia Space Collaboration Set To Grow With PRISM 2.0
Additionally, significant investment opportunities were discussed at the event, including initiatives like the Space Maitri Program, Australia-India Business Exchange, and the $18 million investment in collaborative space projects through the International Space Investment (ISI) Initiative India Project. These programs serve as a proof to the growing commitment of both governments to fostering long-term space cooperation.
India and Australia have enjoyed a long-standing partnership in space exploration, and their collaboration has been further reinforced in recent years.
India and Australia are stepping into a new era of space exploration and innovation, with the PRISM 2.0 initiative playing a pivotal role in unlocking opportunities for both nations. At the PRISM 2.0 webinar the focus was on regulatory alignment and developing pathways to boost trade in satellite hardware, ground stations, software services, and more.
The experts addressed three key areas: export controls, bilateral research and development (R&D) investments, and intellectual property protections. As both nations deepen their cooperation, these areas are central to eliminating trade barriers and paving the way for greater cross-border partnerships.
- Outcomes
One of the most significant outcomes from PRISM 2.0 was the strong focus on space mission support. Australia has played an instrumental role in supporting India’s ambitious Gaganyaan mission, particularly through its Cocos (Keeling) Islands ground station, where critical tracking and astronaut recovery operations are conducted. This cooperation underscores the growing importance of India-Australia space collaboration, especially in terms of mission safety and contingency planning. Australia’s commitment to supporting India’s astronaut recovery operations further highlights the depth of this strategic partnership.
On a larger scale, both countries are seeing rapid growth in their respective space industries. India’s space industry, currently valued at $8.6 billion, is expected to grow at a 16% compound annual growth rate (CAGR), reaching $44 billion by 2033. The Indian space-tech startup ecosystem, in particular, has seen exponential growth, with over 190 startups attracting substantial private investment in 2023.
On the other hand, Australia’s space sector has grown steadily at 7% annually, expanding its workforce by 30% in the last five years. This growth has contributed to a workforce of over 17,000 professionals spread across more than 600 organizations.
India’s advancements in space exploration, combined with Australia’s geographical advantage for equatorial and polar launches, position both countries to drive innovation and expand opportunities for their flourishing space-tech ecosystems. As part of the Economic Cooperation and Trade Agreement (ECTA), over 96% of Indian exports to Australia now enjoy preferential access, providing a significant boost to bilateral trade in space technologies.
The webinar a joint effort by Space Industry Association of India (SIA-India) and Space Industry Association of Australia (SIA-Australia), is a milestone in advancing the strategic collaboration between the two countries, particularly in the space and dual-use sectors. And brought together industry leaders, policymakers, and startups to discuss critical regulatory challenges and to foster an environment conducive to collaboration.
