(Last updated: 16 Apr 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to India. This is regularly updated, and should be checked before planning travel.

Country overview

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

In the last decade, significant structural reforms helped India become one of the world's fastest growing emerging economies. Economic liberalisation and rising incomes also stimulated rapid trade growth with Australia and significantly increased Australia's foreign direct investment in India.

India is a big, diverse economy with a current growth outlook that overshadows most Asian markets. While the pace of growth in the medium to longer term will depend largely on the speed and extent of ongoing reform, at a time when almost all other Asian economies are anticipating contraction or slow growth, the Indian market cannot be ignored. Several fast growing sectors and states provide increasing opportunities for Australian exporters and investors to build on that success.

The Department of Foreign Affairs and Trade in conjunction with Austrade have developed a publication called 'India: New Economy, Old Economy'. It looks at factors that have helped India become one of the world's fastest growing emerging economies, as well as highlighting the fast growing sectors and states that provide increasing opportunities for Australian business.

Since the liberalisation of its economy in 1991, India has opened up many sectors that were previously reserved for the government, to the private, including foreign, investment.

Competition in the telecommunication, infrastructure, power, petroleum and transport sectors is being actively encouraged.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

India is the largest democracy in the world. It is a constitutional democracy consisting of 28 states and seven union and national territories.

The central government in New Delhi has exclusive jurisdiction over all matters of national interest such as defence, communication, banking and finance, international trade and foreign affairs. The state governments have primary responsibility for matters such as law and order, education, health and agriculture.

Parliament is bicameral and comprises of Lok Sabha (lower house) and Rajya Sabha (upper house).

The 2009 Indian national election for the Lok Sabha was held in five phases during May. Dr Dr Manmohan Singh was reappointed as Prime Minister and he is the first Indian Prime Minister to be re-elected after serving a full first term of five years since Nehru in 1961.

Trade relations and statistics

India is a member of the World Trade Organization and has a well-evolved foreign policy based on tenets of non-alignment and peace. A member of the United Nations and Commonwealth, an important achievement of India’s foreign policy has been the strengthening of regional cooperation. India is an active member of the South Asian Association for Regional Cooperation (SAARC).

As members of the Commonwealth, India and Australia have a shared language and similar legal and government systems. Strong belief in democracy and common interests as the Indian Ocean littoral states puts the two countries on the same side of political dialogue. With the increasing importance of the Asia-Pacific region, there are concerted efforts on both sides to expand and diversify bilateral relations.

http://commerce.nic.in provides an overview of India’s trade policies, trade statistics and trade agreements.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.