Lexi Webster
India is a major trading partner for Australia and is the world's 5th largest economy and most populated country. However, in 2023, Australia listed India as a high-risk country in response to the COVID-19 pandemic. This decision was made to reduce the risk of importing COVID-19 by restricting the number of arrivals from India, which was reporting the largest single-day increase of COVID-19 cases for any country since the pandemic began. Australia has also classified India as a high-risk country for student visas, along with other countries like Pakistan, China, and Sri Lanka. This classification is based on the degree to which students from these countries comply with visa regulations, such as overstaying in Australia.
| Characteristics | Values |
|---|---|
| India's closest global partners | Russia, Australia, Japan, the United Kingdom, and the European Union |
| India's stance on the Quad | Reluctant to advance the Quad's military activities |
| India's vulnerability to China | High, due to the ongoing border dispute |
| Quad's stance on China | Committed to diversifying sources of strategic minerals and counteracting China's coercive influence in the Indo-Pacific |
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What You'll Learn
- India is a 'high-risk' country for Australians travelling there due to the threat of kidnapping
- India is a 'high-risk' country for Australians travelling there due to the threat of disease
- India is a 'high-risk' country for Australian universities due to student visa overstaying
- India is a 'high-risk' country for Australian investors due to its underperforming stocks
- India is a 'high-risk' country for Australian importers due to potential export pressure
India is a 'high-risk' country for Australians travelling there due to the threat of kidnapping
India is a high-risk country for Australians travelling there due to the threat of kidnapping. In 1994, four foreign tourists were kidnapped in Delhi, India, between 29 September and 20 October. The kidnappings were carried out by the anti-Indian terrorist group Harkat-ul-Ansar (HuA), under the leadership of Ahmed Omar Saeed Sheikh. Three of the abductees were British citizens: Myles Croston, Paul Rideout, and Rhys Partridge. The fourth abductee, Béla Nuss, was an American citizen of Hungarian heritage. All four were rescued unharmed by the police.
The kidnappers demanded that the Indian government free ten militants imprisoned in Kashmir and threatened to behead their captives if their demands were not met. Béla Nuss was freed by police while investigating a robbery; they stumbled upon the house where she was being held captive. Following information given to the police by Nuss about other hostages, the police staked out the house, captured one of the drivers, and interrogated two terrorists arrested at the site, who led them to the village where the other hostages were being held.
This incident highlights the very real threat of kidnapping that Australians and other foreign tourists face when travelling to India. It is important for Australians to be aware of the risks and take necessary precautions when visiting the country. While the Indian government and police have taken steps to rescue kidnapped tourists, it is crucial for travellers to remain vigilant and informed about potential dangers.
In addition to the risk of kidnapping by terrorist groups, Australia has one of the highest per capita rates of parents unlawfully kidnapping their children and fleeing to countries that are not members of the Hague Convention, such as India. This further underscores the heightened risk that Australians may face in India, whether as victims of kidnapping themselves or as parents trying to recover their children from a country with limited legal recourse.
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India is a 'high-risk' country for Australians travelling there due to the threat of disease
India is a high-risk country for Australians travelling there due to the threat of disease. The Australian Government's Smartraveller website provides travel advice for India, warning of the risk of disease and other health risks.
The website advises that medical facilities in major Indian cities have adequate treatment standards. However, the availability of treatment can be very limited or unavailable in remote and rural areas. Travellers may need to be evacuated if they become seriously ill or injured, and medical evacuation can be very expensive.
Various strains of influenza occur throughout India, and insect-borne diseases are common. Malaria is a risk in many parts of the country, including major cities. Outbreaks of the Nipah virus have also occurred in India, and there is no vaccination available for this virus. The virus is usually transmitted through contact with an infected person or animal, such as bats, as well as food and materials contaminated with their saliva or urine.
Cases of Mpox have also been reported in India and can be transmitted to humans through physical contact with an infected person, animal, or contaminated materials. HIV/AIDS is widespread in India, and waterborne, foodborne, parasitic, and other infectious diseases are very common. Tap water is not safe to drink. Travellers are advised to maintain strict hygiene standards and avoid physical contact with anyone who has Mpox.
In addition to the risk of disease, there are other safety and security concerns in India that Australians should be aware of. There have been incidents of kidnapping in several states across India, and foreigners, including Australians, have been kidnapped while travelling. Certain areas, such as the border districts of Assam, are classified as 'disturbed areas' under the Indian Government's Armed Forces Special Powers Act due to the high risk of internal law and order disruption from separatist and insurgent violence. Curfews and restrictions have also been imposed in parts of Manipur following violent demonstrations, and further restrictions may be imposed at short notice.
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India is a 'high-risk' country for Australian universities due to student visa overstaying
India is a high-risk country for Australian universities due to student visa overstaying. The Australian government has implemented a risk-rating system for countries based on visa rejection rates, cancellations, asylum seekers, and illegal overstayers. India, along with Nepal and Pakistan, is considered a higher-risk country, leading to more stringent visa requirements for students from these nations.
In 2023, India was the second-largest source country for international student enrolments in Australia, with 1.22 lakh Indian students studying there. However, the tougher visa conditions have resulted in a significant decrease in visas granted to Indian students. Between December 2022 and December 2023, there was a 48% decline in visas issued to Indian students, according to The Guardian.
The Australian government's crackdown on student visas aims to reduce annual immigration by half. The stricter norms include higher IELTS scores and increased financial requirements for applicants. This has led to concerns about the impact on bilateral relations between Australia and India, with Barry O'Farrell, the former Australian High Commissioner to India, highlighting the economic, strategic, and social benefits of international students to Australia.
The Australian Home Affairs Department has attributed the tougher visa conditions to an increase in incomplete applications and fraudulent documentation from Indian students. The high refusal rates are officially stated to be due to ""fraud". However, some have criticized the risk-rating system as discriminatory, arguing that it creates a ""caste system" that disadvantages students from certain countries.
The visa crackdown has also affected Australian universities, with some institutions even imposing blanket bans on Indian students. The longer processing times and higher refusal rates have made it challenging for genuine students to obtain visas, potentially deterring talented international students from choosing Australia as a study destination.
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India is a 'high-risk' country for Australian investors due to its underperforming stocks
India is a high-risk country for Australian investors due to its underperforming stocks. While there are opportunities for investors to buy undervalued stocks, there are also risks associated with the Indian market.
Undervalued stocks are those that are trading at a price lower than their intrinsic value or actual worth. This actual worth is based on how much profit the company is expected to make in the future, as well as other factors like cash flow, debt levels, and return on assets. Undervalued stocks can present potential investment opportunities, as they may offer higher returns when the market recognizes their true value, leading to price appreciation and profitable outcomes for early investors.
However, there are also risks involved with investing in undervalued stocks. These stocks may remain undervalued for extended periods, leading to opportunity costs. Additionally, there is a risk that the stock is undervalued due to underlying fundamental issues with the company, which could lead to further price declines. Therefore, investing in undervalued stocks requires a systematic approach and thorough research. Investors should understand how the stock market works, the principles of value investing, and the factors that determine a stock's value.
When assessing the potential value of a stock, investors should consider both internal and external factors. Internal factors include a company's financial performance, such as earnings per share (EPS), revenue growth, and profitability. External factors include economic and market conditions, such as interest rates, industry trends, and competitor performance.
In conclusion, while there may be opportunities for Australian investors to profit from undervalued stocks in India, it is essential to carefully consider the risks and perform thorough research before investing. India's underperforming stocks could present high returns in the future, but there is also a potential for further losses, making it a high-risk investment decision.
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India is a 'high-risk' country for Australian importers due to potential export pressure
India and Australia have a strong trade relationship, with Australia being one of India's leading trade partners. This relationship has been strengthened by the signing of the India-Australia Economic Cooperation and Trade Agreement (ECTA) in 2022, which promises to accelerate bilateral trade flows.
Despite this, India is a high-risk country for Australian importers due to the potential for export pressure. India has a long history of being hesitant to allow imports, and its trade policymakers are sceptical about the benefits of trade for export capabilities and productivity. This is particularly evident in the agricultural sector, which is highly sensitive and protected in India. While Australian agricultural exports target the high-end market in India and do not directly compete with Indian producers, there is a risk that India may impose restrictions on imports to manage its trade deficit and protect its domestic industries.
Additionally, India's demand for mineral imports from Australia, including coal, gold, and natural gas, has driven bilateral trade in the past. However, India's trade policy setting may shift away from these imports to focus on other priorities. India's withdrawal from the Regional Comprehensive Economic Partnership (RCEP) trade bloc in 2019 due to concerns about a flood of imports highlights this risk.
Furthermore, India's close partnership with the United States may also impact its trade relationship with Australia. As a member of the Quad, along with Australia, Japan, and the United States, India has strong geopolitical ties with these countries. However, India's reluctance to advance the Quad's military activities and its independent foreign policy approach could create uncertainty for Australian importers.
In conclusion, while the Australia-India trade relationship has been burgeoning, with ECTA providing a foundation for further growth, India's import restrictions, trade policy setting, and geopolitical considerations create a high-risk environment for Australian importers. Australian businesses importing from India should carefully monitor the trade landscape and be prepared for potential export pressure from India.
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Frequently asked questions
Australia has designated India as a Level 3 (High-Risk) country due to higher rates of visa refusals and cancellations and significant instances of fraudulent activities.
Students from Level 3 countries face additional challenges, including mandatory English proficiency tests and proof of financial capacity for at least six months before applying.
Australia has issued a Level 2 travel advisory for its residents planning to travel to India, asking them to "exercise a high degree of caution" due to the "threat of terrorism, crime, and the risk of civil unrest".
Australians travelling to India should take necessary travel vaccinations, including for rabies and Japanese Encephalitis. They should also be respectful of local customs and pack appropriate clothing, especially when visiting religious sites.
