The Albanese Government has unveiled A New Roadmap for Australia’s Economic Engagement with India, a strategic plan aimed at maximising trade opportunities, boosting businesses, securing supply chains, and creating jobs.
To support this, Australia is investing $16 million in a Trade and Investment Accelerator Fund and an additional $4 million in the Maitri Grants program to strengthen ties.
The existing free trade agreement has saved Australian businesses millions and is expected to cut $2 billion in tariffs by year-end. Negotiations for a new trade agreement are ongoing to further expand opportunities.
The initiative comes at a pivotal time, as India’s economy is on track to become the world’s third largest by 2030, offering enormous untapped potential for Australian trade and investment.
Prime Minister Anthony Albanese described India as an essential partner in Australia’s efforts to diversify trade links and boost prosperity.
“This roadmap is critical to helping us fully realise our potential with India, which will be a boon to Australia’s economy, our businesses and jobs, and our prosperity.”
With Australia’s relationship with India stronger than ever, the roadmap sets a clear direction to deepen ties further. It identifies four key “superhighways of growth” in sectors where Australia has a natural advantage: clean energy, education and skills, agribusiness, and tourism.
Indian visitors alone contribute over $1.5 billion annually to the Australian economy, with significant room for growth as India’s middle class expands. The roadmap outlines practical steps to enhance tourism, including increasing direct flights, promoting Australia as a destination, and supporting Australian sports businesses.
Beyond tourism, nearly 50 targeted opportunities are outlined across industries such as defence, sports, culture, space, and technology.
Foreign Minister Penny Wong emphasised that strengthening economic ties with India aligns with Australia’s broader strategy of enhancing economic security and diversifying partnerships.
“By boosting our economic ties with India, we are not only creating more jobs and opportunities for Australians, we are advancing our shared interest in a peaceful, stable, and prosperous Indo-Pacific.”
The roadmap builds on the success of the Australia-India free trade agreement, which has already saved Australian businesses hundreds of millions of dollars. By the end of this year, it is expected to deliver around $2 billion in tariff savings for exporters. Since its implementation, almost 200 Australian products have entered the Indian market for the first time or returned after a long absence.
Agricultural exports have surged by 146 per cent between 2022 and 2024, while iron and steel exports have increased by 189 per cent over the same period. The savings are not only benefiting exporters but also helping to reduce costs for Australian consumers and create local jobs.
The roadmap is a result of over 400 consultations across every Australian state and territory, as well as in India, and is underpinned by the strong ties between the two nations. Prime Minister Albanese and Indian Prime Minister Narendra Modi have met in person ten times since Albanese took office, underscoring the growing importance of the relationship.
For Australian businesses, the roadmap offers a blueprint to seize the vast opportunities presented by India’s fast-growing market of 1.4 billion people. Trade Minister Don Farrell highlighted the immense potential, noting that the plan will help businesses navigate and capitalise on the booming demand.
“The potential of our relationship with India is almost unmatched, opening a fast-growing market of over 1.4 billion people.”
Businesses are already seeing the benefits of Australia’s trade engagement with India. Macadamia exporter Marquis Macadamias has entered the Indian market for the first time, thanks to reduced tariffs under the free trade agreement. Chief Sales Officer George Hagios said that India had long been on their radar, but high tariffs had made it unviable.
“India is a great market for us—consumers have a great appetite for nuts and dried fruits. We believe ultimately there is sufficient volume to be an industry-changer, but growing the market will require long-term commitment.”
In tourism, small business Foodie Trails is tapping into the strong Indian-Australian community, offering food walking tours, festivals, and cultural experiences. Founder Himanshi Munshaw Luhar sees huge potential in catering specifically to Indian visitors.
“The local Indian community and their visiting friends and relatives are key to boosting regional tourism and spending. There’s immense potential for the Australian tourism industry to upskill their teams with cultural insights and market specifically to this diaspora.”
Meanwhile, companies in the energy sector are also benefiting. Consulting firm Entura, a subsidiary of Hydro Tasmania, is using its expertise to identify potential pumped hydro sites in India. Team Manager Rajeev Raina said the partnership between the two nations in renewable energy is a sign of deeper collaboration.
“The recent launch of the India-Australia Renewable Energy Partnership is a signal of the mutual collaboration in the energy sector between the nations. It provides opportunities for companies like Entura to make a practical difference in the goals of both countries.”
With growing trade, investment, and cultural ties, the roadmap is set to unlock the next phase of Australia-India economic engagement, strengthening one of the most dynamic bilateral partnerships in the Indo-Pacific.
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