Exclusive: Australian body urges swift trade pact with India, boost in two-way investment

The Chief Executive Officer of the Centre for Australia-India Relations, Tim Thomas, has urged for the swift conclusion of a comprehensive economic cooperation agreement between India and Australia. During an exclusive interview with WION's diplomatic correspondent Sidhant Sibal, Thomas emphasised the need for accelerated bilateral trade growth and diversification.

"We would like to see more growth in bilateral trade, but also a more diversified trade. I think it's still very concentrated on certain goods and services," Thomas stated.

The Centre for Australia-India Relations, a national platform established by the Australian Government in 2023, aims to enhance collaboration and engagement with India. It operates across various sectors, including government, industry, academia, and civil society, to foster a deeper understanding of the opportunities arising from the Australia-India relationship. The Centre was officially inaugurated in Sydney in 2024, underscoring Australia's dedication to bolstering its ties with India.

The call for an early conclusion of the trade pact comes in the wake of the Australia-India Economic Cooperation and Trade Agreement (ECTA), which took effect in December 2022. This agreement eliminated tariffs on over 85 per cent of Australia's goods exports to India by value, with this figure expected to rise to 90 per cent over the next five years. Full interview:

WION: What is this centre all about? How does it further the relationship between the two countries?

Tim Thomas: The centre is a very bold and exciting addition to the architecture of the Australia, India relationship. Its fundamental reason for being is to support the transformation of the economic relationship between Australia and India, built on mutual understanding and deepPeople-to-People ties. It is a unique investment amongst India's economic partners, for the Australian Government to uplift the relationship between Australia and India.

WION: So, its primary focus is investment and, of course, the people-to-people relationship?

Tim Thomas: I would say so, I would describe the economic relationship as well as the bilateral trade to investment. I would say there's great opportunities for more joint ventures and innovative collaboration between Australian and Indian companies. And I would say at the top of the pyramid is knowledge partnerships, that is what we would like to see because that will underpin the long-term nature of relations.

WION: How do you see the relationship between the two countries, we have seen high-level engagements between the leadership of the two countries and we have seen strong people to be to connect as well. So how would you characterise this relationship?

Tim Thomas: I would say it is very strong at the government-to-government level, I think we've had incredible levels of ministerial engagement across all of our key portfolios. Of course, our Prime Ministers enjoy a fantastic relationship. We have a very, I would say, intimate strategic relationship, including foreign ministers and defence ministers get together on a regular basis. But I would say that is going very well. I would say the Indian diaspora and Australia play a key part of the people-to-people relationship, this great trusted familiarity in the relationship. What I would like to see more of is that relationships are transferred into more industry outcomes and more growth in economic relationships.

WION: What kinds of practical outcomes your centre is looking at in terms of furthering India's relationship?

Tim Thomas: So, if I break them into about four areas, if I may, the economic relationship. So bilateral trade today is growing at the back of the interim free trade agreement, but it should be much higher. So, we would like to see more growth in bilateral trade, but also a more diversified trade. I think it's still very concentrated on certain goods and services. I would say the other areas, of course, on the public understanding, what is the community's understanding of India to Australia and the Australian community's understanding of what's happening in India. So that's a second area where I think there's great opportunity for improvement. I think we can harness more of the networks and the expertise of our Indian diaspora, particularly what I call the successful leading lights of the diaspora. We want to see greater growth in the relationship. And fourth is a fantastic opportunity to expand our connections culturally with our creative industries and sports.

WION: Essentially, in the relationship, what do you foresee, in like the next one year and expectation from the new government

Tim Thomas: I think there has to be greater investment from key sectors and when I say key sectors, in fact, the Australian Government is doing an updated economic engagement effort through what is known as the future roadmap of economic engagement between Australia - India, that will prioritise some key sectors in tourism, in premium foods and wine, but I would say also in critical minerals, in energy transition, in renewables, advanced manufacturing and agriculture. So, I would like to see more two-way investments in the next year. I would say that has to start with building relationships, and building familiarity with each other's markets in those areas.

I would say the other area is, of course, we would love to see a comprehensive economic cooperation agreement concluded in the next, within the next 12 months. If that is possible, because we think that will facilitate greater investment led economic engagement and expand our relationship in critical minerals and in education.