Australian Exports to India

India Australia relationship is growing steadily over the last few years and this has helped Australian exports to India to grow at a steady pace.

The visit of Australian Prime Minister John Howard to India in March, 2006 saw the signing of a Memorandum of Understanding (MoU) and Trade and Economic Framework (TEF) between the two countries. These helped in a major way to increase Australian exports to India.

Australian exports to India have increased by leaps and bounds during the last few years. In 1999- 2000, Australian exports to India stood at US$ 1079.33 million, in 2000- 2001 it was US$ 1062.76 million, in 2001-2002 it was US$ 1360.10 million, in 2003-2004 it was US$ 2649.24 million, and in 2004-2005 it was US$ 3561.10 million. Around 80% of India's import from Australia during the year 2000- 2001 took place from three major Australian states - Victoria, New South Wales, and Queensland. The main items of import to India from Australia are:

• Coal
• Copper and copper ores
• Wool
• Non- monetary gold
• Fresh vegetables
• Cotton
• Silver, zinc, platinum, and aluminum

The largest item in Australian export to India is coal and this witnessed a sharp increase in the year 2001. Coal registered an increase of 29.9% to A$ 17.8 million from A$ 742.9 million during 2000. Compared to the previous year, the the Australian export of copper ores to India increased by 26.7% to A$ 25.6 million during 2001. The Australian exports to India in the sector of wool saw only a marginal increase to A$ 174.8 million in 2001 from A$ 173.7 million in the previous year. Australian export of Zinc to India saw an increase to A$ 23.3 million in 2001 from A$ 17.8 million in the previous year.

There was a significant increase in the Australian exports to India in the non- monetary sector which rose to A$ 166.2 million in 2001 from A$ 7.1 million in the previous year. Another sector in the Australian exports to India that witnessed a steep increase is the fresh vegetables sector which rose to A$ 165.9 million in 2001 from A$ 116.0 million in the previous year. The Australian export of cotton to India increased to A$ 157.3 million in 2001 from A$ 122.9 million in the previous year.

The Australian exports to India in the silver and platinum sector also witnessed a steep increase. Rising to A$ 54.2 million in 2001 from A$ 36.1 million in the previous year. Similarly, the Australian export of aluminum to India also increased to A$ 23.1 million in 2001 from A$ 2.1 million in the previous year.

Though much progress has been made in Australian exports to India there is still room for growth. The governments of both the countries are in the process of putting in joint efforts so that this relationship can be bolstered.