India, the 6th largest economy is already the fastest-growing large economy in the world. India is Australia’s 4th largest trading partner with Australian merchandise & services exports to India valued at A$ 21.1 billion (2018) and two-way bi-lateral merchandise & services trade valued at A$29.1 billion (2018). Total Indian investment in Australia is near A$ 15.5 billion (up from A$600 million in 2006), while total Australian investment in India is over A$13.9 billion.
In recent years, India has renewed its commitment to a liberal, transparent and globalised economy. Industry sectors, from aviation to mining to defence production, have been opened up to international companies and investors.
India’s growth is different from that of many others. India is seeking to make that leap into industrialisation while also combating climate change, and while reducing the intensity of dependence on fossil fuels. India has set itself a target of 175 giga-watts of renewable energy by 2022, of which 100 giga-watts will comprise solar energy.
India is also in the midst of an infrastructure push of unusual urgency. A determined accretion in highway construction; a nation-wide 100 smart cities programme; massive water projects and river rejuvenation programmes; creating new railway and freight corridors; programme of modernising ports; high-speed train networks in major urban centres; expanding air connectivity using upgraded as well as green-field airports; industrial corridors that are gathering momentum.
Fiscal and regulatory processes have also been significantly revamped. In July 2017 India launched the Goods and Services Tax regime. This has brought all the states & Union Territories (read States and Territories from an Australian context) of India on a common tax platform. It is already making for a cleaner and more structured business system.
In 2018 The Australian Government commissioned an India Economic Strategy to engage to 2035 and to cement India as a priority economic partner.
Over the next 20 years, a growing India will need many of Australia's goods and services – including in education, agriculture, energy, resources, tourism, healthcare, financial services, infrastructure, science and innovation, and sport. The India Economic Strategy is an ambitious plan to transform Australia's economic partnership with India out to 2035. Australia has set itself the goal by 2035 to lift India into its top three export markets, to make it the third largest destination in Asia for Australian outward investment.
The India Economic Strategy has five underlying drivers: grow the Australia India knowledge partnership; make the most of the complementarities between our economies; improve the ability of our markets to operate with each other; develop well-informed understanding of each other; and build relationships which will sustain themselves for the long term.
Taking into account India's economic growth imperative, and the social, environmental and business challenges India faces in integrating such rapid change, Austrade's strategy for India focuses on: Agritech and diary; premium food and beverages; rail, transport and smart urban infrastructure development (taking advantage of the governments smart cities program); METS, Oil and gas and resources; international health, life sciences, cyber security and fintech; higher education and in-market skills development for international work placement, and an e-commerce initiative, reflecting India’s online retail growth (which is the fastest growing across the region, even when compared with markets like China, Japan and Australia). The investment focus for India is on innovation and technology and resources and energy
More information on doing business in India
India regional profiles
Market summaries of major states in India: