Damon Mcknight
India and Australia are two countries with a variety of similarities and differences. Both countries are members of the Commonwealth of Nations, and are founding members of the United Nations. They have a long history of trade relations, with India being Australia's first major trading partner. In this relationship, Australia mainly exports coal, services, vegetables, gold, and copper ores, while India exports refined petroleum, services, medicaments, and jewelry. Despite their strong economic ties, the two countries have differing rates of poverty, access to water, life expectancy, and unemployment rates.
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Trade and economy
The India-Australia Economic Cooperation and Trade Agreement (ECTA) came into force on 29 December 2022. As a result, over 85% of Australian goods exports by value to India are tariff-free, rising to 90% by 1 January 2026. Tariffs have also been reduced on some agricultural products. Additionally, 96% of imports from India are now tariff-free, increasing to 100% by 1 January 2026. The agreement has opened up access to India's fast-growing market of over 1.4 billion people, providing Australian businesses with opportunities for trade diversification.
The economic relationship between India and Australia has grown significantly in recent years. The Australian government has shown interest in developing a strong economic relationship with India, as evidenced by the commissioning of the India Economic Strategy to 2035. This strategy outlines a roadmap for Australia to capitalise on the opportunities presented by India's economic growth. The India-Australia CEO Forum, established in 2011 and revitalised in 2014, provides a platform for businesses from both countries to collaborate and strengthen bilateral trade and investment.
In terms of economic indicators, there are some notable differences between India and Australia. As of 2023, Australia's GDP per capita is $59,500, while India's is $9,200. Australia's top tax rate is 45.0%, compared to India's 35.5%. Australia spends a larger proportion of its GDP on education and healthcare, with 6.1% on education and 10.7% on healthcare, while India spends 4.5% on education and 3.0% on healthcare.
Despite these differences, both countries share values of pluralistic, Westminster-style democracies and Commonwealth traditions. They also have strong people-to-people ties, with a growing number of Indian students choosing Australia for higher education and increasing tourism between the two countries. These factors contribute to the expanding economic engagement and cooperation between India and Australia.
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Military and defence
India and Australia have notably distinct approaches to their military and defence strategies. The Indian Armed Forces are the second-largest military force in the world, with 1.4 million active personnel. It consists of three professional uniformed services: the Indian Army, Indian Navy, and Indian Air Force. India has one of the longest military histories, dating back several millennia, with references to armies found in ancient texts such as the Vedas, Ramayana, and Mahabaratha. India's military has been engaged in various major operations, including conflicts with Pakistan and China. The country has the third-largest defence budget globally and is one of the largest importers of defence equipment, with Russia, Israel, France, and the United States as its top suppliers. India is pushing for self-reliance in defence production under the "Atmanirbhar Bharat" initiative, showcasing indigenously developed weapons and systems.
On the other hand, Australia's military, the Australian Defence Force (ADF), is relatively small for its landmass, with around 89,000 personnel, including full-time active-duty personnel and reservists. The ADF consists of three branches: the Royal Australian Navy (RAN), Australian Army, and the Royal Australian Air Force (RAAF). Australia's military strategy has historically centred on the concept of "forward defence," involving cooperation with allied forces to counter regional threats. In the 1970s, Australia adopted the Defence of Australia Policy, emphasising self-reliance and the defence of continental Australia. The ADF has been involved in various operations in the region, including in the Solomon Islands, Indonesia, and East Timor.
In terms of defence budgets and personnel, India and Australia differ significantly. India has a much larger military force and defence budget, reflecting its global ambitions and historical context. Australia's defence force, while technologically advanced, is focused on regional defence and has a more limited scope.
Both countries have recognised the importance of joint warfare and integrated command structures. Australia's ADF was established in 1976 to unify the separate branches of its military under a single headquarters, addressing coordination issues that became evident during the Vietnam War. Similarly, India's Armed Forces are under the management of the Ministry of Defence, with the President of India serving as the formal Supreme Commander, while actual control lies with the Prime Minister and their cabinet.
In summary, while India and Australia both maintain robust military and defence capabilities, they differ in scale, historical context, and strategic focus. India has a larger and more globally-oriented military, while Australia's defence force is relatively smaller and focused on regional defence and self-reliance. Both nations continue to develop and modernise their defence capabilities, reflecting their respective roles and interests on the global stage.
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Demographics
Australia and India have distinct demographic profiles. Australia has a land area of about 2,973,193 sq km and is located in the southern hemisphere. India, on the other hand, is a vast country in South Asia, with a total land area of approximately 3,287,590 sq km.
As of 2024, Australia's birth rate is 12.2 babies per 1000 people, while India's is higher at 16.2 babies per 1000 people. In terms of maternal health, Australia has a lower rate of maternal mortality, with 3.0 deaths per 100,000 births compared to 103.0 deaths per 100,000 births in India, as of 2020. Additionally, infant mortality rates differ, with 3.0 deaths per 1000 live births in Australia and 30.3 deaths per 1000 live births in India, as of 2022.
Both countries have people living in diverse types of dwellings, including houses, apartments, and hotels. However, the availability of adequate housing varies. While the majority of houses in Australia are well-built and suitable for living, India faces challenges with some houses not meeting basic livability standards. Additionally, both countries have people living in slums, but the number varies between the two nations.
Access to water is another differentiating factor. Most people in Australia have easy access to clean drinking water, while many people in India have to travel long distances to obtain water, and the quality may not always be suitable for consumption.
In terms of health indicators, as of 2022, Australia has a higher life expectancy of 83 years compared to India's life expectancy of 67 years. Australia also has a higher obesity rate, with 29.0% of adults obese as of 2016, while the obesity rate in India was 3.9% during the same period.
When it comes to economic indicators, Australia has a significantly higher GDP per capita of $59,500 as of 2023, compared to India's $9,200. Australia's top tax rate is higher at 45.0% as of 2016, while India's was 35.5% during that year. Australia's unemployment rate is lower, with 3.7% of adults unemployed as of 2023, compared to India's 4.2%.
In summary, Australia and India exhibit notable differences in demographics, ranging from birth rates and health indicators to housing, access to water, and economic factors. These variations shape the distinct societal landscapes of the two countries.
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Housing and poverty
Housing in India varies significantly, from palaces and modern apartment buildings in big cities to tiny huts in rural areas. The average housing area is 103 sq ft per person in rural areas and 117 sq ft per person in urban areas. Despite recent economic growth, poor housing conditions persist for some sections of the population. The real estate sector is thought to be collapsing due to increasing financing costs, a complicated and corrupt regulatory mechanism, and several publicly traded real estate firms being in debt. Eminent domain laws, which are intended to benefit the public, are abused to pressure landowners to sell their land to the government at low prices, which are then sold back onto the market at much higher prices.
In Australia, restrictive planning laws and a lack of available homes have made buying or renting unaffordable for the average person. House prices have jumped 39.1% in the last five years, while wages have failed to keep up. It now takes around 10 years for the average prospective homeowner to save for a deposit. Rents have also increased across major cities, with Sydney, Perth, and Canberra among the most expensive.
While India's economy grows, poverty remains a significant challenge. The World Bank reported that India experienced a significant decline in the prevalence of extreme poverty from 22.5% in 2011 to 10.2% in 2019. In 2019, the Indian government stated that 6.7% of its population is below the official poverty limit, and the World Bank reported that 84% of Indians lived on less than $6.85 per day in 2019. According to Oxfam, India's top 1% of the population holds 73% of the wealth, while 670 million citizens have seen their wealth rise by just 1%.
In Australia, the poverty rate is not as readily available, but it is known that housing has become unaffordable for the average Australian. This is due to a combination of high house prices, increasing rents, and a lack of social housing.
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Water access
As the driest inhabited continent, Australia faces unique challenges in providing its population with clean and reliable water. Variable rainfall, streamflow, and landscape conditions, coupled with agricultural demands, growing urban populations, and climate change, contribute to frequent water shortages. The Australian government is committed to tackling these issues through various initiatives. The National Water Grid Authority, for instance, supports responsible investment decisions that promote positive environmental outcomes, such as supporting biodiversity, restoring natural ecosystems, and developing sustainable construction practices. Additionally, the government is addressing water supply challenges in First Nations and remote communities, allocating $150 million to ensure access to safe and reliable water for these areas.
In contrast, India, with 18% of the world's population, has only 4% of its water resources, making it one of the most water-stressed countries globally. The country's water availability is heavily dependent on erratic monsoons, and climate change is expected to further intensify the frequency and severity of floods and droughts. To address these challenges, India has made significant investments in irrigation infrastructure, particularly benefiting small and marginal farmers. The World Bank has also been actively involved in water resource management, supporting the government's national groundwater program, Atal Bhujal Yojana, in seven Indian states. This program aims to improve groundwater management and build resilience in areas with high depletion rates.
In recent years, India has made notable progress in improving access to clean drinking water. In 2015, India achieved 93% coverage of access to improved water supply in rural areas. However, the new Sustainable Development Goals (SDGs) baseline estimates suggest that less than 49% of the rural population has access to safely managed drinking water. To address this issue, the Indian government restructured the Ministry of Drinking Water and Sanitation in 2019, launching the Jal Jeevan Mission with the ambitious goal of providing piped water supply to every household by 2024.
Both Australia and India recognise the importance of ensuring access to clean and reliable water for their citizens. While Australia faces challenges due to its arid climate and variable water availability, India struggles with water scarcity and the need to improve water management practices. Both countries are actively pursuing initiatives to enhance water security and address the unique challenges they face.
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Frequently asked questions
India was Australia's first major trading partner, with imports and exports between the two countries dating back to the 18th and 19th centuries. In 1941, India established a Trade Office in Sydney, Australia. As of 2016, bilateral trade between the two countries totalled A$21.9 billion.
India and Australia are both members of the Commonwealth of Nations and founding members of the United Nations. They are also members of the Indian Ocean Rim Association for Regional Cooperation and the ASEAN Regional Forum. In 2014, the two countries signed a landmark deal to increase their defence relationship.
As of 2022, the average life expectancy in Australia was 83 years, while in India, it was 67 years. In 2016, 29.0% of adults in Australia were obese, while in India, that number was 3.9%.
In both countries, the majority of people live in houses, apartments, or hotels. However, both countries also have people living in slums and poverty.
Australia has easy access to clean, drinkable water, while in India, most people have to walk kilometres to get water. The majority of houses in Australia are well-built and suitable for living, while in India, some houses are not built up to scratch.
