Lexi Webster
Australia and India have a long history of cultural, economic, and political ties. The two countries first established diplomatic relations in 1941, and since then, there has been a significant flow of people and trade between them. Indians are the largest migrant group in Melbourne and Adelaide and the fourth-largest in Brisbane. In 2016, they became the largest source of skilled migrants to Australia, and by 2021, 783,958 people declared Indian ancestry, representing 3.1% of the population. This number rose to 970,000, or 3.8% when grouping all Indian-related ancestries. Australia and India also share a passion for cricket and field hockey, with many Australian and Indian cricketers popular in either country. However, despite the strong cultural and economic links, Australians have expressed moderate distrust in India, with only 45% trusting India to act responsibly in the world, according to a 2020 Lowy Institute Poll.
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What You'll Learn
Cricket and other sports
Sports have always been a common ground that connects people, transcending national and cultural barriers. Cricket, in particular, holds a special place for both India and Australia, making it a vital element in strengthening bilateral ties. The two countries first played Test cricket against each other in 1947, and since then, the rivalry has grown into one of the dominant duels in the game. The matches between these countries are known for their intensity and are considered some of the biggest matches in the world. The two sides have played a total of 295 times, with Australia winning 143 matches compared to India's 111 victories. Australia has won the ICC Cricket World Cup six times, compared to India's two.
Australian cricketers like David Warner, Shane Warne, Adam Gilchrist, and Brett Lee are immensely popular among the Indian people. Gilchrist, who is the Australia-India Education Ambassador, has inspired hundreds of students in India, strengthening people-to-people connections through education and sports. Likewise, Sachin Tendulkar is highly regarded among Australian cricket lovers. Over 20% of Australian cricket players have South Asian heritage. In March 2023, Prime Minister Narendra Modi hosted his counterpart, Prime Minister Anthony Albanese, during the fourth test match of the 2024 Border–Gavaskar Trophy, as a tribute to the 75 years of diplomatic relations between the two countries.
In addition to cricket, India and Australia also have strong ties to field hockey, which came to both countries with the British military in the mid-19th century. Moreover, India has recently shown a growing interest in rugby, while kabaddi has gained significant popularity in Queensland. Sports diplomacy between the two countries is a dialogue of trust, respect, and shared values that strengthen their partnership. Australia's advanced infrastructure, technical expertise, and sporting acumen could benefit India, especially in the context of future Olympic events. For instance, Australia is fostering state-to-state collaborations with India, expanding beyond the playing field to include skill development, education, and coaching opportunities.
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Migration and diaspora
Indians in Australia, or Indian Australians, are Australians of Indian ancestry, including those born in India or elsewhere in the Indian diaspora. Indian Australians are one of the largest groups within the Indian diaspora, with 783,958 people declaring Indian ancestry in the 2021 census, representing 3.1% of the Australian population. By June 2024, the Indian-born population in Australia had increased to 916,330, an increase of nearly 150,000. Indians are the fastest-growing community in Australia in terms of absolute numbers and percentages.
The history of Indian migration to Australia dates back to the 18th century when Indians served as soldiers and sailors aboard visiting European ships. In the 19th century, Indians were brought to Australia as labourers and domestic workers. After the federation in 1901, the migration of non-white migrants from India was curtailed due to policies like the Immigration Restriction Act. However, following India's independence in 1947, there was an increase in the migration of Indian-born Anglo-western white British citizens and mixed-race European-Indians to Australia. During World War II, hundreds of Australian soldiers served in India, and after the war, there was a boom in the migration of middle-class skilled professionals from India to Australia. In 2017-18, India was the largest source of new permanent annual migrants to Australia, with 20.5% of Australian permanent resident visas going to Indians.
Indian Australians are highly educated, with 54.6% holding a bachelor's degree or higher, more than three times the Australian national average as of 2016. Hindi and Punjabi are among the top 10 languages spoken in Australia, with other Indian languages like Tamil, Bengali, and Malayalam also being widely spoken. Indians have also had a significant impact on Australian culture, with cricket and the Indian Premier League being considered "the lifeblood of the Australia-India relationship".
Genetic studies have suggested that Indian explorers settled in Australia and assimilated into the local population about 4,000 years before the First Fleet landed in 1788. There is evidence of a substantial genetic flow from India to northern Australia, and Indian tools and dogs may have been introduced to Australia around this time.
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Diplomatic relations
Australia and India have strong diplomatic relations, with cultural, economic, and community ties. The two countries first established diplomatic relations in the pre-Independence period when the Consulate-General of India was opened as a Trade Office in Sydney in 1941. In March 1944, Lieutenant-General Iven Mackay became Australia's first High Commissioner to India, and in 1945, India's first High Commissioner to Australia arrived in Canberra.
Since then, the two countries have continued to strengthen their diplomatic relations. In 2020, the Australia-India relationship was upgraded to a Comprehensive Strategic Partnership (CSP), based on mutual understanding, friendship, and a shared vision of a peaceful, stable, and prosperous Indo-Pacific. Australia and India collaborate on various issues, including science and technology, maritime cooperation, trade and investment, defence ties, agriculture, education, and tourism.
The Indian community in Australia is significant, with almost one million Australians tracing their heritage to India, according to the 2021 Census. Indians are the largest migrant ethnic group in Melbourne and Adelaide, and the fourth-largest in Brisbane. In 2016, Indians were the highest-educated migrant group in Australia, with 54.6% holding a bachelor's degree or higher. India is also a top source of skilled immigrants to Australia, with many working as doctors, nurses, engineers, and IT specialists.
Cricket is considered the lifeblood of the Australia-India relationship, with Australian cricketers like David Warner and Shane Warne popular in India, and Indian cricketers like Sachin Tendulkar admired in Australia. The two countries also share a passion for field hockey, which was introduced to both countries by the British military in the 19th century.
The economic relationship between Australia and India is strong and growing. In 2022, the Australia-India Economic and Trade Agreement (ECTA) was implemented, strengthening both economies. In 2023, India was Australia's fourth-largest export market and fifth-largest trading partner, with two-way trade reaching $49 billion. Australian investment in India totalled $17.6 billion, while Indian investment in Australia was $34.5 billion.
The two countries also engage in regular high-level political interactions. Prime Ministers of both countries meet annually at the Quad Leaders' Summit, and their foreign ministers meet annually for the Foreign Ministers' Framework Dialogue. Australian Prime Minister Albanese visited India in March 2023, and Indian Prime Minister Modi visited Australia in May 2023, demonstrating the close ties between the two nations.
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Trade and economic ties
India and Australia have strong economic and trade ties, with India being one of the few countries with which Australia has annual leader-level meetings, a free trade agreement, and a 2+2 foreign and defence ministers' meeting. In 2019, bilateral trade was valued at $18.9 billion, accounting for 2.7% of Australia's total trade. However, the bilateral trade relationship has gained momentum recently, with bilateral goods flows more than doubling to $39.3 billion in 2022.
The Australia-India Economic Cooperation and Trade Agreement (ECTA), which came into force on 29 December 2022, has been instrumental in boosting trade ties between the two countries. Under ECTA, over 85% of Australian goods exports to India are tariff-free, with this figure set to increase to 90% by 1 January 2026. Similarly, 96% of imports from India are tariff-free, rising to 100% by 1 January 2026. This has resulted in significant cost savings for Australian businesses and consumers, and has unlocked access to India's fast-growing market of over 1.4 billion people.
The complementary nature of the Australian and Indian economies has also contributed to the strengthening of trade ties. Australia's exports of coal, gold, and natural gas support India's industrialization goals, while India's exports of chemicals, machinery, and pharmaceuticals provide essential inputs for Australian industries and add diversification and resilience to Australia's supply chains.
Recognizing the potential for further growth, the Australian government has launched "A New Roadmap for Australia's Economic Engagement with India," aiming to maximize trade opportunities, boost two-way investment, and strengthen supply chains. The roadmap identifies four key sectors for growth: clean energy, education and skills, agribusiness, and tourism. Additionally, the Australia-India Trade and Investment Accelerator Fund, with a $16 million investment, is designed to help Australian businesses explore new commercial opportunities in India.
The frequent interactions between the leaders and ministers of the two countries, including the annual Foreign Ministers' Framework Dialogue and the 2+2 meetings, provide a strong foundation for advancing the bilateral agenda and addressing challenges in the economic relationship.
With India's economy projected to become the world's third-largest by 2030, the trade and economic ties between Australia and India are expected to continue flourishing, bringing benefits to both nations.
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Trust and public perception
The relationship between Australia and India has strengthened over the years, with the two countries upgrading their ties to a Comprehensive Strategic Partnership (CSP) in June 2020. They have strong cultural, economic, and political ties, with regular interactions between their Prime Ministers and annual meetings of their foreign and defence ministers.
However, there is a certain level of distrust among Australians towards India. According to the 2020 Lowy Institute Poll, only 45% of Australians trusted India to act responsibly in the world, a significant drop from 2018. Similarly, only 42% expressed confidence in India's Prime Minister Narendra Modi to act responsibly. This distrust may be attributed to various factors, including India's involvement in spying activities in Australia, doubts about Indian democracy, and differences in views regarding the Russia-Ukraine conflict.
The issue of spying caused a particular stir, with reports in 2024 that Indian intelligence agents had been expelled from Australia for attempting to cultivate local politicians, breach security protocols, and procure classified trade information. While the Australian government has played down the issue, it has potentially contributed to a sense of unease among Australians about India's intentions.
Another factor influencing public perception is the different stances taken by the two countries on the Russia-Ukraine conflict. Australia has supported sanctions on Russia and providing military aid to Ukraine, while India has faced criticism for purchasing Russian oil and weapons. This divergence in approaches may have created a level of tension and impacted how Australians view India's foreign policy decisions.
Despite these challenges, it is important to note that Australia and India have a long history of engagement, and their relationship has been bolstered by strong people-to-people ties, a shared interest in sports like cricket, and a growing Indian diaspora in Australia. Indians are the largest migrant ethnic group in Melbourne and Adelaide, and Indian Australians are one of the largest groups within the Indian diaspora worldwide.
In summary, while there may be a measured lack of trust among Australians towards India, as reflected in public opinion polls, the two countries have strong and growing ties across various domains. The Australian government has actively sought to strengthen this relationship, recognising the importance of India as a regional ally and a counterpoint to China's influence in the Indo-Pacific region.
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Frequently asked questions
The ties between Australia and India started immediately following European settlement in Australia in 1788. On the founding of the penal colony of New South Wales, all trade to and from the colony was controlled by the British East India Company. Indians were brought to Australia as labourers and domestic workers, with migration being curtailed after federation. In 1941, Australia and India established diplomatic relations. In recent years, India has been the largest source of skilled migrants to Australia.
The relationship was upgraded to a Comprehensive Strategic Partnership (CSP) in June 2020. The two countries have strong diplomatic ties and collaborate on science and technology, maritime cooperation, trade and investment, defence, agriculture, education and tourism. They also have annual leader-level meetings, a free trade agreement, and a 2+2 foreign and defence ministers’ meeting.
Australians have a lukewarm perception of India. According to the Lowy Institute Poll, India received a rating of 52 degrees on the Feelings Thermometer, with only 45% of Australians trusting India to act responsibly in the world. There is also a lack of faith in India's democracy and its Prime Minister Narendra Modi. However, India is seen as a useful ally to counter China's influence in the region.
Indians have a strong interest in Australia, with a significant Indian diaspora in the country. India is one of the top sources of new permanent annual migrants to Australia, and many Indian students study in Australian universities. Cricket is also a key aspect of the relationship, with Australian cricketers like David Warner and Shane Warne being popular in India.
