History of the Relationship

1. The two nations were British colonies and gained independence from the same colonial master. However, this ended the similarity between the two nations. After India’s independence, its foreign policy embraced a path of non-Alignment and refused to join either of the camps during the Cold War. Australia, on the other hand, became a firm US ally.
2. With the disintegration of the former USSR in 1991, India-Australia relations took a positive turn along with its other allies such as Japan, South Korea, ASEAN, Israel, and Australia. India reached out to Australia, and vibrant cooperation began.
3. However, this was halted when Australia sanctioned India after the 1998 Pokhran Nuclear Tests. Australia, which has always depended on the US for its security, opposed India, which wanted to build its security apparatus. India’s nuclear policy, which emphasizes peace and deterrence, fell on deaf ears.
4. It finally took over ten years for India Australia relations to develop and to re-start this cooperation. It led to the signing of the ‘Strategic Partnership’ Agreement in 2009. But this was immediately denied by the numerous attacks on Indian students studying in the Australian universities.
5. Australian Society’s racism was exposed, and the cooperation between the two countries weakened. In 2015, the relations got back on track, and in recent times, it has only grown in strength and character.

Pillars of Cooperation

India-Australia cooperation expands into multiple areas. However, in recent times, collaboration can be narrowed down to broadly four essential areas. They are the following:

 Economic Cooperation 

1. India is Australia’s tenth-largest trading partner. The economic partnership between the two nations appears to be promising in terms of growth potential. For the year 2018- 19, the bilateral trade stood at US$ 30.3 billion, and the bilateral investments for the year 2019 stood at US$ 30.7 billion.
2. Australia is also hoping to further enhance its partnership with India to cut down on its reliance on China. Over 26% of Australia’s trade is with China. Recently China has curbed trade with Australia to punish it for demanding an inquiry into the origins of the COVID-19 virus. This has promoted closer cooperation between India and Australia.
3. In 2018, Australia announced ‘an Indian economic strategy to 2035’ based on – 3 pillars (economic ties, geo-strategic engagements, rethinking culture- thrust on soft power diplomacy), ten sectors, and participation of 10 Indian states. Specific industries and specific conditions have been identified. India, too, has launched its Australia Economic Strategy. These are about  India Australia relations background

Defence/Strategic Relations 

1. The two nations had also signed the Civil Nuclear Cooperation Agreement in 2014. Australia has agreed to supply India with its Uranium after this agreement for its civil nuclear agreements. This was a great achievement for both nations as Australia had once sanctioned India in 1998 for its nuclear tests.
2. Both countries also decided to elevate their 2+2 Strategic Dialogue to that of a Ministerial level. Australia is the third nation with whom India has started this 2+2 Strategic Dialogue due to great India Australia Relations. It signifies that India recognizes these nations as critical to its partnership and seeks to build greater relations with them.

 Science and Technology Cooperation 

1. The two countries have identified a range of joint research projects in areas such as agricultural research, nanotechnology, and renewable energy and have established an Australia-India Strategic Research Fund (2006). This now needs to be revitalized to focus on COVID-19 specific research and other areas.
2. The threats from Climate Change are now well known. The fortunes of India and Australia are interlinked. E.g., the phase of El-Nino brings droughts to India and floods in Australia, whereas in the case of La Line, it is the opposite.
3. It was only last year that there were massive bushfires in Australia and floods in India. The two nations should tackle this immediately and conduct research to mitigate the effects of climate change. The research and development in the field of agricultural technology, water technology, etc., will yield positive results.

 Diaspora 

1. It is the diaspora that has actively nurtured the relations between the two nations. There are over 7 lakh Indians staying and working in Australia. Many of them have become naturalized Australian citizens and contribute to the development of ties between the two nations.
2. There are also over 1 Lakh Indian students who form a large chunk of the international students in Australia. They contribute to the Australian GDP.

 The Road Ahead

1. India Australia Relations are bound to grow and grow by leaps and bounds. There is tremendous potential for growth in ties between these two nations in the economic sphere, and continuous efforts are needed to nurture it.
2. India is the most important nation in the Indian Ocean Region, and it plays a critical role in this region. Cooperation with Australia to tackle issues of Chinese aggression and combat piracy is mutually beneficial. To maintain inclusivity, accountability, openness, and a rule-based order, India, and Australia must develop a holistic shared Indo-Pacific vision.
3. The Indian diaspora in Australia is one of the largest and fastest-growing diasporas. By forging personal connections in commerce, the arts, culture, politics, and civil SocietySociety, the Diaspora can help to strengthen the relationship.

Conclusion

Because of the geopolitical and geoeconomic turmoil in international affairs, India and Australia must forge a partnership based on principles and a humane approach. You can use these India Australia relations UPSC notes to prepare for the upcoming UPSC exams.