The future for Indo-Oz relations

Will the new government prove to be old wine in a new bottle or will it make an effort in genuinely improving Indo-Oz relations?

BY MOHAN THITE

Despite the change of government in Australia after six years, the impact and implications for relations with India are most likely to be minimal.

First of all, India is mired in its own economic, political and social problems, adversely affecting its growth rate and global leverage. There is a looming tussle between Rahul Gandhi and Narendra Modi in the upcoming elections. Until India finds its own direction and moves decisively, it can’t expect the rest of the world to take it seriously.

it up nicely: Learning from chaos: Win in India to win everywhere. India is like a wild horse. Once you tame it, it will be your Black Caviar”. Australia is fast losing its attractiveness for Indian students as a destination for higher studies. With the high Aussie dollar and increasing restrictions on student visas and permanent residency, Indian students today tend to prefer the USA and UK over Australia.

With the high Aussie dollar and increasing restrictions on student visas and permanent residency, Indian students today tend to prefer the USA and UK over Australia

But India is becoming strategically important to Australia in one respect, human resources. The focus of Australia’s migration program has significantly shifted over the last decade towards an ‘emphasis on attracting skilled migrants in order to meet Australia’s labour needs’ and skilled migrants, both permanent and temporary, are allocated the lion’s share (68%) of the migration intake.

Even though both Liberals and Labor have endorsed selling uranium to India, it is highly unlikely to warm Australia’s relations with India. The key challenge in the relationship is ‘trust deficit’. It is telling in the fact that no Indian Prime Minister has visited Australia in over 25 years, whereas Australian Prime Ministers have been to India several times during that period.

In finding reasons for India’s lack of interest in Australia, the Sydney Morning Herald (29/8/2012) felt that “to India, Australia doesn’t matter that much [as] Australia is, at best, a third-tier partner in Indian eyes”. It is true that the only thing that interests India about Australia is its energy resources. Private Indian firms like Adani and GVK Group have made some major inroads in regards to this.

Today, India is Australia’s fourth largest trading partner with trade heavily skewed in favour of Australia. Still, Australian companies have had very limited success in entering the burgeoning Indian market. In my keynote address on ‘Doing business in India’ organised by the Queensland Government’s India Council in 2012, I had noted, “Success in India requires a unique approach to find the jugaad way, like ‘water flowing through the paths of least resistance’. Slicing through the chaos in India to success demands a unique genius, one that can sometimes confound Western logic and norms. The title of an upcoming book sums

In 2011-12, India became the largest source country for permanent migration, and second largest for temporary skilled migration in Australia. India is also the prime destination for global services offshoring. Harnessing Indian human capital is therefore vital for the long-term economic and labour needs of Australia.

There is tremendous scope for relations between India and Australia to reach new heights – economically, politically and socially. To realise this potential, both sides need to make some serious strategic moves. India on its part needs to shed its ‘reluctant superpower’ image and should participate seriously in global affairs by taking decisive steps in forging enduring partnerships with USA, Japan and Australia.

Let us hope Tony Abbott and his government will be the guiding light that heralds a new era of Indo-Australian relations

The Australian government and political/ business leaders equally, need to look beyond short-term fixes in strengthening their relationship with India and show patience, perseverance and genuineness in their engagement.

Let us hope Tony Abbott and his government will be the guiding light that heralds a new era of Indo-Australian relations.

After all, the Indian and Australian tectonic plates were fused together millions of years ago and according to new research, Australian aborigines had contact with Indian migrants 4,000 years ago. So our relations go a long way back, and even Pauline Hanson will not be able to tell Indian migrants to “go back to where you came from!”