Strengthening ties: Australia’s post-election vision for a deeper partnership with India

From the editor’s desk

As Australia transitions from the 2025 federal elections, the newly elected government has a clear opportunity to deepen and diversify its relationship with India. Over the years, the partnership between the two nations has evolved into a strong, multifaceted alliance, characterized by shared democratic principles, mutual economic benefits, and a joint vision for regional stability in the Indo-Pacific. With growing trade, enhanced defense collaboration, and cultural exchange, the newly formed government is expected to build on these existing strengths to solidify an even more robust bilateral partnership.

Trade and investment: Charting the course for deeper economic engagement

One of the most significant areas where Australia and India are expected to strengthen their ties is in trade and investment. Economic cooperation between the two nations has already seen substantial growth, with both countries recognizing the immense potential of further collaboration. In the lead-up to the elections, Prime Minister Anthony Albanese presented a forward-thinking roadmap outlining 50 opportunities aimed at advancing trade and investment relations through the Australia-India Economic Strategy. This initiative also included the creation of the Australia-India Trade and Investment Accelerator Fund, designed to stimulate greater commercial partnerships. The new government is set to build upon this strategy, fostering an environment conducive to even greater trade flows and investment exchanges.

At the core of these economic efforts is the ongoing negotiation of the Comprehensive Economic Cooperation Agreement (CECA), which promises to deepen the economic ties between the two countries. After multiple rounds of negotiations, both the Australian and Indian governments have expressed a firm commitment to finalizing the deal. Once concluded, the agreement will provide a significant boost to bilateral trade by eliminating tariffs, simplifying regulatory frameworks, and improving market access. The upcoming round of talks, slated for November 2025 in India, will present a critical opportunity for the new administration to expedite negotiations and secure an agreement favorable to both sides. The deal could open doors for Australian companies seeking access to India’s fast-growing economy, while also providing Indian businesses with enhanced access to Australian markets, particularly in sectors such as technology, education, energy, and natural resources.

Business leaders in both countries have expressed strong support for expanding trade, with organizations such as the Australia India Business Council (AIBC) actively championing the cause. Australian businesses are increasingly viewing India as a key market for long-term investment opportunities. Sectors such as renewable energy, agribusiness, and technology are expected to benefit immensely from closer collaboration. Furthermore, Australia’s abundant reserves of critical minerals, including lithium and rare earth elements, are of great interest to India, which is eager to secure essential resources for its burgeoning electric vehicle and renewable energy industries. Reports suggest that Indian stateowned enterprises are already negotiating stakes in Australian lithium projects, highlighting the growing depth of economic collaboration that aligns with global sustainability efforts.

Security and defense: A strategic partnership in the Indo-Pacific

In addition to economic cooperation, the strategic aspect of the Australia-India relationship remains a central focus. Since the establishment of the Comprehensive Strategic Partnership (CSP) in 2020, both nations have worked to strengthen defense cooperation and align their security strategies. As geopolitical tensions in the Indo-Pacific intensify, Australia and India share a common interest in ensuring that the regional order remains based on rules and diplomacy. Their partnership in the Quadrilateral Security Dialogue (Quad), which also includes Japan and the United States, reflects this shared commitment to regional security.

The incoming Australian government is expected to further intensify defense collaboration with India, focusing on military-to-military engagement, maritime security, and intelligence sharing. Both countries see the Indo-Pacific region as strategically vital, and their defense cooperation has become increasingly important in countering potential security threats. With India actively modernizing its defense capabilities, Australia has a unique opportunity to deepen its military relationship with India, particularly in the fields of joint exercises, defense technology, and strategic partnerships.

Military exercises like AUSINDEX and Malabar, which feature joint drills between Australian and Indian forces, have demonstrated the growing interoperability of the two nations’ armed forces. These exercises play a key role in improving the operational readiness and effectiveness of both countries’ militaries.

As India continues to modernize its defense industry, there will be additional opportunities for collaboration in defense manufacturing and supply chain resilience. The new government is likely to explore avenues for Australia to contribute to India’s defense sector, particularly through partnerships in defense production and technology transfer. These collaborations will not only enhance the security capabilities of both countries but also promote stability and peace in the broader Indo-Pacific region.

Education and culture: Fostering deeper people-to-people connections

The role of education and cultural ties cannot be underestimated in the Australia-India relationship. The Indian diaspora in Australia, which now exceeds a million people, plays a crucial role in building strong people-topeople links. Indian students continue to flock to Australia for higher education, with Australian universities benefiting from the influx of international talent. Furthermore, recent agreements between Australian and Indian universities have paved the way for collaborative research initiatives and joint academic programs, facilitating greater academic cooperation between the two nations. The new Australian government is expected to continue supporting student exchange programs, recognizing the long-term value they bring in fostering deeper diplomatic and economic ties. Education plays a pivotal role in strengthening bilateral relations, as it provides young people from both countries with opportunities to build lasting connections. Additionally, the growing recognition of Indian contributions to Australian society, whether in business, academia, or culture, has sparked increased engagement between the two nations at the governmental and community levels.

Cultural exchanges have also become an integral part of the Australia-India relationship. Indian festivals like Diwali and Holi, which are celebrated enthusiastically across Australia, serve as important symbols of the cultural bond between the two nations. The growing presence of the Indian community in Australia has made cultural celebrations more widespread and has helped bring Indian traditions into the mainstream Australian cultural landscape. Cultural collaborations, such as joint art exhibitions, film projects, and performances, have further deepened mutual understanding and appreciation between the two countries.

As Australia moves forward after the 2025 elections, strengthening its relationship with India will remain a strategic priority. Both nations are eager to enhance their economic, security, and cultural ties, and the partnership between Australia and India holds significant promise for the future.