Ruqayyah Snyder
India and Australia have a strong and growing strategic, economic, and community partnership. Both countries are members of the Commonwealth of Nations, founding members of the United Nations, and participate in various regional organisations and multilateral fora. They have a long history of cooperation, including shared experience in World War I, and have established diplomatic relations since 1941. With increasing high-level bilateral visits, annual leader-level meetings, and growing trade, defence, and cultural ties, India and Australia are committed to advancing their relationship for regional peace and stability.
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What You'll Learn
India-Australia defence ties
India and Australia have a "Comprehensive Strategic Partnership" and are allies. The two countries first established diplomatic relations in 1941, when India opened a Trade Office in Sydney. In March 1944, Lieutenant General Iven Mackay took up his first position as Australia’s first High Commissioner to India.
In recent years, India and Australia have strengthened their defence ties, signing a Mutual Logistics Support Agreement in 2020. This pact allows each country to use the other's military bases for refuelling and maintenance of aircraft and naval vessels, and facilitates joint military exercises. The two countries also hold regular joint naval exercises called AUSINDEX, with the first iteration held in 2015.
In addition to defence ties, India and Australia cooperate in various multilateral fora, including the United Nations, the Commonwealth of Nations, the Indian Ocean Rim Association for Regional Cooperation, and the ASEAN Regional Forum. They are also both members of the Quad, alongside Japan and the United States, and engage in trilateral dialogues with Indonesia and France.
Both countries have also established a $100 million Strategic Research Fund and a Civil Nuclear Cooperation Agreement, which allows Australian uranium mining companies to supply uranium to India for civil use.
The Australia-India relationship is based on mutual understanding, friendship, and shared values and interests, with a focus on advancing regional peace and stability. The two countries have strong cultural, economic, and community ties, with almost one million Australians reporting Indian heritage in the 2021 Census.
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Migration and citizenship
India and Australia have a long history of migration between the two countries. There is evidence of ancient migration from India to Australia around 4,000 to 5,000 years ago, based on DNA and language development. More recently, during the colonial period, Indians worked on European ships trading in Colonial India and the East Indies, and many early voyages to the Pacific either started or ended in India. After the founding of the penal colony of New South Wales in 1788, all trade to and from the colony was controlled by the British East India Company.
In the early 20th century, the number of Indians in Australia was estimated to be between 4,700 and 7,600. However, the 1901 Immigration Restriction Act, which targeted non-white migrants, curtailed Indian migration to Australia. After India gained independence from Britain in 1947, the number of Indian-born Anglo-western white British citizens emigrating to Australia increased, along with mixed-race European-Indians. During World War II, hundreds of Australian soldiers served in India, and many Indians served in the RAF units in India and Burma.
In recent years, India has been the largest source of new permanent annual migrants to Australia, with 20.5% of Australian permanent resident visas going to Indians in 2017-18. Additionally, there were 70,000 Indian students studying in Australian universities and colleges during that period. Indians in Australia are highly educated, with 54.6% holding a bachelor's degree or higher, more than three times the Australian national average. The top 10 languages spoken in Australia include Hindi and Punjabi, and Indian religions such as Buddhism, Hinduism, and Sikhism are also practised in Australia.
While Australia allows dual citizenship, the Indian constitution does not. This has led to challenges for expatriates who wish to take up residency and citizenship in Australia, as they must renounce their Indian nationality. To address this issue, India has created the Overseas Citizenship of India (OCI) status, which allows individuals to hold residency in India without applying for a visa. However, the privileges of OCI holders can vary depending on the government's policies.
Australia has implemented initiatives to attract skilled workers from around the world, including India, to meet the demand for a skilled workforce. The Permanent Migration Program, for example, plans to intake 190,000 immigrants into the country in 2023-2024. Obtaining Australian citizenship typically requires an individual to be over 16 years of age, have permanent resident status, and intend to stay in the country or maintain a close association with it.
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Trade and economic relations
India and Australia have a strong and growing economic relationship. In 2015-16, the total value of trade between the two countries was A$19.4 billion, a significant increase over the preceding decade. Australia's exports to India include coal, vegetables, gold, and copper ores and concentrates, while India exports refined petroleum, medicines, and business services to Australia. In 2008, over 97,000 Indian students enrolled in Australian educational institutions, representing an education export of A$2 billion.
The two countries have also established a $100 million Strategic Research Fund and have signed various agreements to strengthen their economic ties. In September 2014, a Civil Nuclear Cooperation Agreement was signed, allowing Australian uranium mining companies to supply Indian civil operations with uranium. In 2020, India and Australia signed the Mutual Logistics Support Agreement, which allows each country to use the other's military bases for refuelling and maintaining aircraft and naval vessels. In November 2024, Prime Ministers Albanese and Modi launched the Australia-India Renewable Energy Partnership, committing to work together in eight key areas, including solar PV, green hydrogen, and solar supply chains.
The India-Australia economic relationship has grown significantly in recent years, with the Australian Government commissioning the India Economic Strategy to 2035 to define a pathway to unlock opportunities for growth. The India-Australia Economic Cooperation and Trade Agreement (ECTA), which entered into force on 29 December 2022, has made over 85% of Australian goods exports by value to India tariff-free, and 96% of imports from India tariff-free. The two countries are also engaged in negotiations for a Comprehensive Economic Cooperation Agreement (CECA).
The India-Australia CEO Forum, established in 2011 and revitalized in 2014, provides a mechanism for businesses from both nations to engage directly on ways to build the bilateral trade and investment relationship. The Forum includes heads of Indian and Australian businesses from a broad range of sectors, including energy, agribusiness, telecommunications, and pharmaceuticals. The Centre for Australia-India Relations, launched in May 2023, also supports and facilitates greater engagement and collaboration between the two countries, helping Australian businesses engage with Indian markets and promoting policy dialogue.
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Cultural and community links
India and Australia have strong cultural and community links. The two countries have a shared history of being British colonies, and this has resulted in a merging of cultures influenced by cuisine, spirituality, architecture, and art. Cardamom, black pepper, cloves, garam masala, red chili powder, and cayenne are some of the Indian spices that have become common in Australian home cooking. Indian festivals such as Holi Fest and Diwali are celebrated annually in Melbourne and Victoria, with the latter coinciding with harvest and new year celebrations.
India has the largest diaspora population in the world, and many live in Australia. In 2023, those born in India made up the second-largest migrant group in Australia. As of 2023, there are over 846,000 people born in Indians living in Australia, with 673,000 Indian-born Australians reported in the 2021 census. Punjabi is the fastest-growing language in Australia, while Hindi remains among the top ten languages spoken in Australian homes. The Indian-born population is also religiously diverse, with 51.0% identifying as Hindu, 22.1% as Sikh, 10.6% as Catholic, and 4.2% as Muslim as of 2021.
The Indian-Australian community is Australia's second-largest and fastest-growing overseas-born group, forming a vital living bridge between the two nations. Australia is committed to collaborating with India on various fronts, including science and technology, maritime cooperation, trade and investment, defence ties, agriculture, education, and tourism. The two countries have also established a $100 million Strategic Research Fund. In 2023, India was Australia's fourth-largest export market and fifth-largest trading partner, with two-way trade reaching $49 billion.
The Centre for Australia-India Relations, launched in May 2023, supports and facilitates greater engagement and collaboration between the two countries. Initiatives such as the Australia India Leadership Dialogue and Australia India Youth Dialogue connect leaders and emerging voices from both nations, strengthening bilateral ties. The close partnership between Australia and India is reflected in the high-level engagement between their leaders and ministers. Australia is one of only three countries with which India holds annual leader-level summits.
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Energy and climate cooperation
India and Australia have a long history of cooperation in various fields, including energy and climate. Both countries are members of the Commonwealth of Nations and share political, economic, security, cultural, and sporting ties. In recent years, there has been a growing focus on energy and climate cooperation between India and Australia, with both countries recognising the importance of addressing global issues such as climate change.
Energy Cooperation
India and Australia have made significant strides in their energy cooperation, particularly in the renewable energy sector. In November 2024, Prime Ministers Anthony Albanese and Narendra Modi launched the India-Australia Renewable Energy Partnership at the Australia-India Annual Summit in Brazil. This partnership outlines eight key areas for collaboration, including solar PV, green hydrogen, solar supply chains, energy storage, and capacity building. Joint projects in solar PV and green hydrogen are already underway, and both countries have expressed their commitment to building a future renewable energy workforce through skills development and training.
The Australia-India Economic Cooperation and Trade Agreement has also facilitated energy cooperation by eliminating tariffs on a significant portion of Australian goods exported to India, including critical minerals, and reducing duties on customs for renewable energy projects. This has resulted in improved cost efficiency for the Indian renewables industry. Additionally, Indian companies have found Australia an attractive destination for renewable energy investments, with companies like Delectrik Systems exploring vanadium production for the Indian energy storage sector.
Furthermore, Australia and India have a history of cooperation in the civil nuclear field. In September 2014, during the Australian Prime Minister's visit to India, a Civil Nuclear Cooperation Agreement was signed, allowing for the export of Australian uranium to India for civil use.
Climate Cooperation
India and Australia have acknowledged their shared interest in addressing climate change and have engaged in various initiatives to tackle this global issue. Australia has committed to supporting India in its climate goals and has collaborated with Switzerland to provide funding for a World Bank capacity-building project in India related to the Clean Development Mechanism (CDM). This project aims to assist India in identifying sectors for clean development projects to further its sustainable development objectives.
Both countries are also members of the Asia Pacific Partnership on Climate and Clean Development, the International Solar Alliance, and the Coalition for Disaster Resilient Infrastructure. They have participated in bilateral capacity-building initiatives, including an Activities Implemented Jointly (AIJ) project and a collaborative solar power project. Additionally, Australia has expressed its support for India's candidature in an expanded UN Security Council and its membership in APEC.
In summary, India and Australia have made significant progress in their energy and climate cooperation, with a growing focus on renewable energy and sustainable development. While there may be challenges and barriers to overcome, the shared commitment and collaboration between the two countries bode well for the future of their energy and climate partnership.
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Frequently asked questions
Yes, India and Australia are allies. They are close partners with strong and growing strategic, economic, and community ties.
Both countries are members of the Commonwealth of Nations and founding members of the United Nations. They also cooperate in various multilateral fora, including the Indian Ocean Rim Association for Regional Cooperation and ASEAN Regional Forum. In addition, they have established a $100 million Strategic Research Fund.
India and Australia have a growing defence relationship. They hold annual Defence Policy Talks and a 1.5 Track Defence Strategic Dialogue. They also have a Mutual Logistics Support Agreement, which allows each country to use the other's military bases for refuelling and maintenance of aircraft and naval vessels.
