India-Australia Relations

India and Australia have several commonalities, which serve as a foundation for closer cooperation and multifaceted interaction. Both are strong, vibrant, secular and multicultural democracies. Both of them are members of Commonwealth due to virtue of their being former British colonies, both have a free press and an independent judicial system; the English language is an important link. Cricket is a significant element in awareness at the popular level.

Analysis

In this article, we are analyzing the India-Australia relations in the light of below questions for mains.

• Explain the historical ties between India and Australia? How did these ties have evolved at present in political and economic sphere?
• What is the strategic significance of Australia in India’s Act East policy and Australia’s Look west policy?
• Examine the significance of recently signed nuclear deal as a breakthrough in their relation.
• Explain the challenges between both countries that act as a stumbling block in realizing its full potential?

Explain the historical ties between India and Australia? How did this ties have evolved at present in political and economic sphere?

The historical ties between India and Australia can be discussed in terms of pre and post independence eras.

Pre-Independence times

India and Australia have commercial ties dating back to the 18th century, when India played a central role in nourishing the young colony and trade with Australia came to be an important element in the operations of the East India Company in Bengal.  Australia’s most immediate and direct links were with India rather than London, as bureaucrats, merchants, chaplains and judges, moved between the two colonies. India was an important source of food and provisions for Australia.

Post-Independence times

The relationship between Canberra and New Delhi were full of missed opportunities, mainly because:

• The long shadow of the Cold War where India was perceived to be attached with Soviet Union
• India’s autocratic economic policies
• The White Australia policy
• Canberra’s decision not to transfer uranium to India, have kept the two countries apart for several decades.

Current developments

Relations between India and Australia have deepened dramatically over the past decade:

• India’s economic growth and its burgeoning demand for energy, resources and education have propelled India to become one of Australia’s largest export markets.
• The recent Australian decision to extend civilian nuclear cooperation to India, overriding its own long-term principled position, is no ordinary development.

On the political front, the two countries established a strategic partnership and have strengthened multi-level interactions and cooperation. In addition, the two countries have maintained coordination and cooperation in multilateral mechanisms, including the ASEAN Regional Forum, East Asia Summit, the Group of Twenty, and the Indian Ocean Rim Association for Regional Cooperation. Australia supports India’s permanent membership at the UN Security Council and its membership at APEC while India supports Australia’s observer status at the South Asian Association for Regional Cooperation (SAARC).

Economically, bilateral trade and investment between the two countries have grown rapidly. In terms of merchandise trade, India is the largest buyer of Australian gold, copper ore, and chickpeas and the second largest export market for Australian coal and wool.

What is the strategic significance of Australia in India’s Act East policy and Australia’s Look west policy?

India and Australia view security cooperation as necessary to deepen the bilateral strategic partnership.

• One third of the exclusive economic zone of Australia lies in the Indian Ocean, and a significant portion of the country’s coal, iron ore, liquefied natural gas and other resources is transported through the Indian Ocean.
• As a naval power among the Indian Ocean Rim countries, India has the most powerful navy and maritime guards, with special positioning advantages at key passageways on both the east and west sides of the Indian Ocean and protecting maritime navigation. Strengthening maritime security cooperation with India is very important to Australia.
• Australia also believes that it is necessary to step up cooperation with India in the areas of counter-terrorism, nonproliferation, disaster management, and combating illegal migration.
• India values Australia’s growing naval power and its role as a member of the Indian Ocean Rim Association for Regional Cooperation and hopes to join hands with Australia in maintaining maritime security in the Indian Ocean and enhancing the role of the Indian Ocean Rim Association for Regional Cooperation as a regional framework for maritime security.
• India also expects support from Australia in Afghanistan, in its attempt to integrate into the international non-proliferation regime, and in joining the Australia Group.
• India and Australia have realized that their cooperation is necessary to counter increasing china’s hegemony in Indian ocean and south china sea

Examine the significance of recently signed nuclear deal as a breakthrough in their relation.

After years of banning any uranium sale to India, Australia is set to sign a deal with India to supply it for civilian purpose. Since India had not signed the nuclear non‐proliferation treaty, Australia had stopped selling uranium to India.

India will be benefited from this supply as it provides fuel for nuclear power plants in India. And hence energy sector of India will be immensely benefited.

More and more of the significant players in the nuclear arena globally have now come to accept the changed role of India in international nuclear order, despite India not signing the nuclear non‐ proliferation treaty. This deal will put pressure on Japan also to sign a deal with India. This implies that India’s isolation in nuclear environment is being gradually eroded.

Explain the challenges between both countries that act as a stumbling block in realizing its full potential.

• First, there is a structural imbalance in the Australian and Indian economic and trade relations. Australia’s exports to India account for about 90% of total bilateral trade, with India generating a clear trade deficit.
• Second, the two countries have different strategic priorities. Although Australia and India share common concerns over China’s rise, they differ in their strategies to cope with the issue.

The priority of Australia’s Asia-Pacific strategy is to ride on the express train of the region’s economic growth, respond to security challenges due to the rise of China and India, and obtain security safeguards by strengthening its alliance with the US. While the rise of China remains Australia’s top security concern and the latter would like to develop a strategic relationship with India to counterbalance China, China has always been ahead of India in the priority list of Australian diplomacy. Australia is not seeking a Cold War-style containment or deterrence against China but rather a more balanced approach. A strong economic bond between Australia and China makes Australia more willing than China’s other major trade and investment partners to avoid frictions with China. It is worth mentioning that the Australian strategic community is not entirely worry-free about India and they believe that a strong Indian in control of the Indian Ocean is also a threat to Australia. Currently, Australia believes that the expansion of India’s naval capabilities, especially an enhanced maritime administration, would help improve the security on the Indian Ocean, but this view may change if India seeks greater naval power status by ruling the Indian Ocean or its ambition leads to an intensified naval race with China. Australia may be reluctant to recognize the dominant role of India in the Indian Ocean and will become even more reluctant to see India establish a sphere of influence in the north-eastern Indian Ocean.

Question: GS Mains Answer Writing / Discussion

While throwing light upon importance of Australia for India’s Look East and Act East Policy, examine the key challenges that exist for bilateral relations between India and Australia. Has there been a renewed push to the India Australia relationship in the last few years? Discuss.