Issues in Indo-Australian relationship

Issues in Indo-Australian relationship

When it comes to issues in a bilateral relationship, no two countries undergo a similar set of issues. The bilateral relationship between India-Australia has undergone an evolution in recent years. The people-to-people ties, growing tourism, increasing Indian students going to Australia for higher education and sporting links, have played a significant role in strengthening bilateral relations between the two countries. Despite this, the strategic ties between Australia and India keep falling short of expectations. The differences in the way both countries perceive their roles and their security concerns weaken the strategic foundations of the bilateral relationship.

What are the issues in Indo-Australian relationship?

Indo-Australian ties have been ambivalent for a while now. While bilateral relations are strong at the government level, the two countries cannot be said to be close friends yet. Democracies and open markets such as India and Australia would have much to forge a new understanding. But there are a number of issues that pose challenges to the relationship. These include nuclear power, trade and defence tie-ups and maritime security. Some of major issues in Indo-Australian relationship are discussed below.

Visa issues: There are numerous issues between India and Australia that affect their bilateral relationship adversely. The major factor is the visa policy of Australia which is viewed as highly rigid to the Indian workforce and hence affecting the potential for cooperation between the two countries. The major cause of strain in India-Australia bilateral relations actually boils down to a single issue: immigration and visas of Indians working in Australia. India’s desire for visa reforms in Australia, which would permit more Indian workers to seek employment in Australia, remains unmet. India wants greater free movement and relaxed visa norms for its IT professionals, on which Australia is reluctant.

Economic relations: Economic relations between India and Australia have not been consistent, owing to differences between the two nations in areas of trade, investment, and economic aid. The trade between the two countries has been at a modest $31 billion, largely composed of resources like coal and other minerals. Negotiations on a free trade agreement, which began in 2011, have not moved forward significantly.

Nuclear power issue: India’s reservations about Australia’s policy of nuclear alliances in the region have been an issue. Nuclear non-proliferation has been the most important agenda since the signing of the NPT by both countries. However, most recently India has moved away from strictly adhering to a policy of non-alignment and is increasingly engaging with both China and US.

Bilateral defence cooperation: The development of bilateral defence cooperation is limited, particularly when compared with the strategic partnership. Although security has received a lot of significance in the relationship, in practice Australia-India defence cooperation remains relatively undeveloped. There are a considerable number of defence and security dialogues between the two countries, but none has been translated into more substantive cooperation.

Attacks on Indians: Australian racist attacks on Indians have been a source of diplomatic tension in the Indo-Australian relationship between India and Australia. These attacks also led to a drop in the number of students coming from India to Australia. Indians living in Victoria State argued that authorities failed to protect them and their property from repeated attacks.

Quad crisis: The Quadrilateral Dialogue between the United States, India, Japan, and Australia (or the Quad) is a security architecture in the Indo-Pacific to promote consultation among its four members. At the moment, however, the Quad is in crisis: Australia has been poorly treated by Japan and India. India’s unwillingness to invite Australia to participate in the Malabar naval exercise, despite Australian lobbying, has sparked speculation over the fate of the Quadrilateral Consultative Dialogue (the ‘Quad) involving India, Australia, Japan and the United States.

Steps to be taken to improve the bilateral relations

Energy: Whether India is the most growing economy in this decade or no, its demand for energy has been constantly increasing. Both India and Australia have long been occupying the energy space, yet it was only a few years ago, that the two countries majorly started discussions over cooperation in the field of the energy business. The Indian Government is positive towards its relations with Australia in each and every aspect. Australia is expected to overtake Qatar to be the largest exporter of Liquefied Natural Gas according to Energy Quest. Australia’s long-term and secure LNG supply can help diversify India’s current highly concentrated import supplies from the Middle East.

Science & Technology: Science and technology is one area where Australia and India have a strong track record of collaborating. Australia and India have worked together to develop new technologies for Indian agriculture, including improved cotton and chickpea varieties, drought-tolerant crops and rice, and nutrient-boosting fertilizers. The Australian Government’s $1.1 billion National Innovation and Science Agenda presents new opportunities to engage with India. The agenda resonates well with India’s ‘Start-up India’ and ‘Make in India’ campaign.

Space: Space exploration for the purpose of policy implementation is an important aspect of bilateral relations. The Indian Space Research Organisation (ISRO) has a proud record of space exploration, including recently with its successful Mars Orbiter Mission and launching 104 satellites in one go. ISRO is positioning itself at the cutting edge of commercial space applications. As an agency under a federal structure, commercial initiatives often run into difficulties when it comes to getting approval from different ministries and departments.

Economic ties: The India-Australia Comprehensive Economic Cooperation Agreement (CECA) provides a roadmap for the full economic engagement of our two nations, enabling deeper economic engagement through the mutual elimination of barriers to trade and investment. It also would enable us to move from being observers to positive contributors to the global trade agenda. The CECA would deliver a win for both of us.

Exports in merchandise: The weakest link in India’s exports to Australia is in merchandise. Australia is a brand-conscious market while India has not created a single consumer brand of international acceptance. Indian companies will need to invest a little more in market research on Australian consumer expectations and lifestyles before their products can successfully penetrate the Australian market.

Security: A strategic alliance is one that goes beyond a transactional relationship in the pursuit of a deeper and enduring partnership. The assumption should be that both countries have the same interests in every area of potential interaction, including in their overlapping regional relations, with China and Pakistan, Afghanistan and terrorism.