India-Australia Virtual Summit | Government moves to secure critical minerals and investments from Australia

Minerals & Investments

An MoU was signed on cooperation in the critical mining sector which was signed by Khanij Bidesh India Ltd. (KABIL) and Australia's Critical Mineral Facilitation Office. "It would establish a framework for building partnerships in critical investment. This would enable us to both invest in Australia's critical mineral sector as well as get Australian expertise in this area," Foreign Secretary Harsh Vardhan Shringla said.

KABIL was set up in 2019 with the participation of three Central Public Sector Enterprises (CPSEs) to ensure a consistent supply of critical and strategic minerals to the Indian domestic market. These CPSEs are National Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL), and Mineral Exploration Company Ltd.

The two Prime Ministers also agreed that there would be increased cooperation between India's National Investment and Infrastructure Fund (NIIF) and Australia's pension and sovereign fund, called the Future Fund.

"This is again important because of our interest in attracting Australian investments in our infrastructure development. India will offer the same tax benefits for Australia's sovereign and pension funds in India, as is given in Australia. In other words, we are willing to match the tax benefit that Australia gives to its sovereign and pension funds. Once they invest in India, they will get similar benefits," Shringla said.

Both nations are also working to quickly wrap up talks on a proposed trade pact between the countries. Moneycontrol has reported how this will include import duty cuts on premium Australian wines, although there is no mention of the country’s dairy products.

The new trade pact is aimed at raising India’s trade with Australia to the level where it can complement the strategic relationship between the two countries. Australia was India’s 12th largest trading partner, up from being the 15th largest trading partner in 2020-21 and the 17th largest in 2019-20. Meanwhile, Australian investments in India are currently pegged at $15 billion while India's investment footprint in Australia is $12 billion, Shringla said.

The Comprehensive Economic Cooperation Agreement (CECA) to be announced will be an ‘early harvest’ agreement, one in which both parties sign off on a set of relatively easily achievable deliverables. "The completion of the CECA will be significant for our economic relations, economic revival, and economic security, PM Modi tweeted after the Summit.

Defence and Security

Both sides announced the setting up of the general Vipin Rawat young defense officers exchange program which would enable younger officers from both sides to familiarise themselves with each other's countries and will greatly increase the service to service contacts.

As regards China, both leaders shared their perspectives. PM Modi referred to the line of actual control in Ladakh and the border clashes of the previous year. "PM Modi reiterated that peace and tranquility in the broader areas was an essential prerequisite for normalisation of relations with China. PM Morrison also gave a fairly detailed perspective of how he saw China and its actions in the region. He spoke in particular about the South China sea," Shringla said.

Both leaders also called the Quad grouping a factor of stability in the Indo-Pacific.

Migration

There was also a letter of intent signed between both nations, aimed at working towards a Migration and Mobility Partnership Agreement. This would facilitate migration between the countries, an issue that has been of importance to India.

According to Australia's Department of Home Affairs, at the end of June 2019, 6.6 lakh Indian-born people were living in Australia, more than twice the number (3.07 lakh) at June 30, 2009. This makes the Indian-born population the third-largest migrant community in Australia after the United Kingdom and China, equivalent to 2.6 percent of Australia's total population.

Digital & technological connect

India has proposed the early integration of digital payment systems of both countries. While India has the United Payments Interface, Australia has created the New Payments Platform. Modi has pointed out that integration would greatly help the seven lakh Indian community members in Australia. It would also enable India to become a popular education and tourism destination for Australia.

Both nations have also cooperated in space technology. According to the MEA, the Partnership has maintained the momentum of an upward trajectory with both countries continuing to collaborate closely, despite the COVID-19 pandemic, in wide-ranging areas including science and technology, defence, cyber, critical and strategic materials, water resource management, as well as public administration and governance.

Both leaders also discussed calibrating and cooperating with each other on support to Pacific Island countries for humanitarian assistance and disaster relief in combating climate change through initiatives like the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure.