India-Australia Partnership at a Glance: A$48.9 Billion Trade, ECTA in Force, CECA Under Negotiation
By R Anil Kumar
Bengaluru, July 8, 2026. Prime Minister Narendra Modi will begin a three-day official visit to Australia from July 8 to 10 at the invitation of Australian Prime Minister Anthony Albanese. The visit is expected to inject fresh momentum into the India-Australia Comprehensive Strategic Partnership, with discussions likely to focus on trade, investment, critical minerals, technology, education and strengthening people-to-people ties.
India and Australia have significantly expanded their economic engagement over the past few years, underpinned by regular high-level interactions and landmark trade initiatives. Australia unveiled its India Economic Strategy to 2035 in 2018, identifying India as one of its most important long-term economic partners. An updated strategy was released in 2022, reaffirming Australia’s commitment to deepening commercial engagement with India. On the Indian side, the Confederation of Indian Industry released the Australia Economic Strategy Report in 2020, outlining opportunities to strengthen bilateral economic cooperation.
A defining milestone in bilateral economic relations came with the signing of the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) on April 2, 2022. The agreement was signed by Union Commerce and Industry Minister Piyush Goyal and then Australian Trade and Tourism Minister Dan Tehan in the virtual presence of Prime Minister Narendra Modi and former Australian Prime Minister Scott Morrison. The agreement entered into force on December 29, 2022, providing a major boost to bilateral trade and investment. Simultaneously, legislation relating to the Double Taxation Avoidance Agreement came into effect, ensuring that Indian IT companies would no longer face double taxation from the financial year 2023-24.
Negotiations on the broader Comprehensive Economic Cooperation Agreement (CECA) are also progressing, with eleven rounds of negotiations completed so far. The agreement is expected to further deepen market access and strengthen economic integration between the two countries.
High-level institutional engagement has continued to reinforce the economic partnership. The 19th India-Australia Joint Ministerial Commission meeting was held in Adelaide on August 25, 2024, and was co-chaired by Commerce and Industry Minister Piyush Goyal and Australia’s Trade and Tourism Minister Don Farrell. The meeting reviewed progress under ECTA and explored ways to expand bilateral trade and investment.
Business-to-business engagement has also gained momentum. The revitalised India-Australia CEOs Forum met for the first time in Mumbai on March 9, 2023, during Prime Minister Albanese’s State Visit to India. The forum subsequently established five Joint Working Groups, which submitted policy recommendations aimed at strengthening economic cooperation. The Forum’s co-chairs, Shemara Wikramanayake and Anish Shah, met again in Mumbai in May 2024, followed by a virtual CEOs Forum meeting in October 2024 attended by ministers from both countries.
Australia also participated as the Partner Country at the Vibrant Gujarat Global Summit held in January 2024, sending a delegation of more than 70 members. In February 2025, Australia further reaffirmed its long-term commitment to India by launching A New Roadmap for Australia’s Economic Engagement with India, aimed at unlocking new opportunities for trade, investment and strategic collaboration.
The growing partnership is reflected in expanding bilateral trade. India is now Australia’s sixth-largest trading partner. Bilateral trade in goods and services stands at A$48.9 billion, equivalent to US$32.6 billion. India’s exports to Australia are valued at A$13.7 billion (around US$9.1 billion), including US$6 billion in goods and US$3.1 billion in services. Imports from Australia total A$35.2 billion (approximately US$23.5 billion), comprising US$16.8 billion in goods and US$6.65 billion in services. Bilateral trade in goods and services has recorded a growth of 0.59 per cent over calendar year 2022.
India’s key exports to Australia include refined petroleum products, pharmaceuticals, pearls and precious stones, jewellery and made-up textile articles. Australia’s major exports to India include coal, copper ores and concentrates, natural gas, ferrous and non-ferrous scrap, confidential trade items and education-related services.
India-Australia Defence Engagement Grows Across Land, Sea and Air
Defence cooperation has emerged as one of the strongest pillars of the India-Australia Comprehensive Strategic Partnership, with both countries steadily expanding collaboration across the military, maritime security, defence industry and strategic dialogues.
The partnership received a significant boost during Prime Minister Narendra Modi’s visit to Australia in 2014, when the two sides agreed to institutionalise regular Defence Ministers’ meetings, enhance service-to-service engagements and conduct regular maritime exercises. Since then, defence ties have evolved into a comprehensive partnership encompassing operational cooperation, capacity building and defence industrial collaboration.
Another milestone was achieved in March 2022 with the conclusion of the Implementing Arrangement for Cross-deployment of Maritime Patrol Aircraft, enhancing interoperability and facilitating closer maritime surveillance cooperation between the two countries.
High-level defence engagements have remained frequent. Defence Minister Rajnath Singh held a telephonic conversation with Australia’s Deputy Prime Minister and Defence Minister Richard Marles in July 2024. He also met Australia’s Minister for Defence Industry and Capability Delivery Pat Conroy on the sidelines of the 11th ASEAN Defence Ministers’ Meeting-Plus in November 2024, where both sides reviewed the progress of bilateral defence cooperation.
Military exercises have become a defining feature of the partnership. The bilateral naval exercise AUSINDEX has grown in scale over the years, with the 2019 edition witnessing Australia’s largest-ever naval participation. The latest edition was held in Sydney in August 2023, reaffirming the importance of maritime interoperability.
The joint military exercise AUSTRAHIND has also gained momentum. The 2023 edition, conducted in Western Australia, marked the first time that all three services of the Indian Armed Forces participated together. The 2024 edition was held in Pune from November 8 to 21, further strengthening joint operational capabilities.
The two countries have consistently participated in each other’s major military exercises. Australia joined India’s multinational naval exercise MILAN in 2018, 2020, 2021, 2022, 2023 and 2024, while Indian naval ships participated in Australia’s biennial Kakadu Exercise in 2018, 2022 and 2024. The Indian Air Force participated in Exercise Pitch Black in 2018, 2022 and 2024, reflecting growing air force cooperation.
India and Australia have also worked closely in multilateral military engagements. Both countries participated in the French-led La Pérouse naval exercise in 2021 alongside the United States and Japan. India joined Exercise Talisman Sabre as an observer in 2021 and 2023, while Australian forces participated in Exercise Malabar 2024 after India deployed two naval ships and a P-8I maritime patrol aircraft during the 2023 edition hosted in Sydney.
Cooperation has expanded beyond traditional military exercises. The Indian Air Force participated in Exercise Southern Discovery supporting Antarctic operations in February 2024, while India also joined Exercise Southern Jackaroo as an observer in June 2024. In another first, Australian combat aircraft participated in India’s multinational air exercise Tarang Shakti in September 2024.
Regular institutional dialogue has strengthened strategic coordination between the armed forces. The 8th Defence Policy Talks were held in Canberra in July 2023, followed by Naval Talks in New Delhi in May 2024, Army-to-Army Staff Talks in October 2024, and the 11th Indian Air Force-Royal Australian Air Force Air Staff Talks in November 2024.
Senior military leadership exchanges have also intensified. India’s Chief of Naval Staff visited Australia in 2022, followed by the Chief of Army Staff’s visit in April 2023. The Chief of the Australian Navy visited India in April 2024, while Chief of Defence Staff General Anil Chauhan visited Australia in March 2025, where he held discussions with Australia’s Chief of Defence Force, David Johnston, focusing on military training, defence diplomacy and regional security cooperation.
Maritime security cooperation has also expanded through trilateral initiatives. The second India-Australia-Indonesia Trilateral Maritime Security Workshop was held in Kochi in May 2024, highlighting the shared commitment of the three countries towards ensuring a secure and stable Indo-Pacific.
Defence industrial cooperation is emerging as another important pillar of bilateral engagement. The third India-Australia Joint Working Group on Research, Industry and Materiel Cooperation met in New Delhi in August 2023. In April 2024, a delegation representing Indian defence shipyards visited Australia’s major naval shipbuilding facilities in Adelaide and Perth to explore opportunities for industrial collaboration.
Indian defence public sector enterprises showcased indigenous capabilities at the Indian Ocean Defence and Security Conference 2024 in Perth, while Minister of State for Defence Sanjay Seth led India’s participation at Australia’s Land Forces Defence Exposition 2024 in Melbourne. Australia also participated in Aero India 2025, while an Indian delegation attended Avalon Australian International Airshow 2025, reflecting growing defence industrial engagement.
People-to-people links within the armed forces have also been strengthened through the General Rawat India-Australia Young Defence Officers’ Exchange Programme, announced in 2022. The inaugural edition was held in India in 2023, bringing together 15 officers each from the Indian and Australian armed forces, while the second edition was hosted by Australia in July 2024.
India-Australia Cooperation Expands Across Agriculture, Space, Innovation and Energy
Prime Minister Narendra Modi’s three-day official visit to Australia from July 8 to 10 is expected to further strengthen cooperation across sectors, including agriculture, science and technology, space, innovation and clean energy. Over the past decade, these areas have become key pillars of the India-Australia Comprehensive Strategic Partnership, complementing the growing strategic and economic engagement between the two countries.
Agricultural cooperation has steadily expanded since 2012, supported by regular Joint Working Group (JWG) meetings. The 6th Joint Working Group on Agriculture was held in Canberra in February 2025, reviewing progress in agricultural trade, research and market access. Bilateral cooperation has also translated into improved market access for agricultural products. Australia opened its market to Indian pomegranates in 2020 and pomegranate arils in 2022, while during the first India-Australia Annual Summit in March 2023, both Prime Ministers welcomed the completion of market access arrangements for Australian Hass avocados to India and Indian okra to Australia.
Science and technology cooperation has remained a cornerstone of the bilateral relationship since the establishment of the India-Australia Strategic Research Fund (AISRF) in 2005. The programme continues to support collaborative research between institutions in both countries, with the 16th round of funding applications launched in 2025. Water security has also emerged as a priority area, with the Australia-India Water Security Initiative (AIWASI) approved in 2022 and the 6th Joint Working Group on Water Cooperation held in November 2023, focusing on sustainable water management and climate resilience.
Space cooperation has witnessed remarkable progress in recent years. The two countries signed an agreement on civil space cooperation in 2012, laying the foundation for growing collaboration between the Indian Space Research Organisation and the Australian Space Agency.
In April 2024, Australia announced A$18 million to support three joint space projects under its International Space Investment programme. Another major milestone was achieved in November 2024, when ISRO and the Australian Space Agency signed an agreement on crew and crew module recovery for India’s Gaganyaan human spaceflight mission. The two countries have also expanded commercial space collaboration. Australia’s Space Machines Company partnered with NewSpace India Limited to launch its 450-kg Optimus Orbital Servicing Vehicle aboard India’s Small Satellite Launch Vehicle in 2026. The launch of Space MAITRI (Mission for Australia-India’s Technology, Research and Innovation) has further strengthened collaboration between research institutions, industry and startups in the space sector.
Innovation and startup partnerships have also gained momentum. The Atal Innovation Mission (AIM) and Australia’s CSIRO launched the India-Australia Rapid Innovation and Startup Expansion (RISE) Accelerator in 2023 to support startups working on circular economy technologies. The inaugural cohort selected 14 startups, with seven each from India and Australia, while the second round has also been announced. Earlier, both organisations had launched the I-ACE Hackathon in 2020 to encourage collaborative innovation.
Energy security and clean energy have emerged as another major area of cooperation. The India-Australia Energy Security Dialogue, established in 2012, has evolved into a broad-based partnership covering renewable energy, hydrogen and critical minerals. During the fourth Energy Dialogue in 2022, both countries signed a Letter of Intent on New and Renewable Energy Technologies, committing to collaborate on ultra-low-cost solar energy and green hydrogen.
The first India-Australia Annual Summit in 2023 also witnessed the signing of the Terms of Reference for the India-Australia Solar Taskforce, while the Green Hydrogen Task Force was launched during Prime Minister Modi’s visit to Sydney in May 2023. The partnership gained further momentum with the launch of the India-Australia Renewable Energy Partnership during the second Annual Summit in November 2024.
Critical minerals have become another strategic focus area. In March 2022, India’s Khanij Bidesh India Limited and Australia’s Critical Minerals Facilitation Office signed an agreement to jointly invest in Australian critical mineral assets, supporting resilient supply chains for clean energy technologies and advanced manufacturing.
The two countries are also working together through global clean energy initiatives. Australia is a member of the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure. During the virtual Leaders’ Summit in 2022, India announced matching Australian contributions of A$10 million each for Pacific Island countries under the Infrastructure for Resilient Island States (IRIS) initiative and the International Solar Alliance, reaffirming the shared commitment of both countries to sustainable development and climate resilience.
As Prime Minister Modi visits Australia, cooperation in agriculture, innovation, science, space exploration and clean energy is expected to feature prominently in discussions, reflecting the expanding scope of a partnership that increasingly extends beyond traditional strategic and economic engagement.
