Australia Boosts India Ties with $25.3 Million Budget Outlay

"The funding forms part of the next phase of Australia's Comprehensive Strategic Partnership with India and is aimed at helping Australian businesses tap into India's expanding market, seed new areas of cooperation through Maitri grants, and strengthen maritime security in the Indian Ocean," according to a report in The Australia Today.

The increased allocation in the Budget is expected to support stronger business links between the two countries, at a time when Australian companies are looking to diversify markets and build deeper commercial ties across the Indo-Pacific, the report states.

India has become an increasingly central part of Australia's regional strategy, with both countries working more closely on trade, education, clean energy, technology, defence and Indian Ocean security.

The report cites Australia's Foreign Minister Penny Wong as saying that the Budget reflected Australia's focus on regional stability and long-term partnerships. At a time of global uncertainty, Australia will remain a reliable partner our region can count on, she added.

The Indian funding comes as the government warns that the global development and economic landscape is facing major pressure from aid cuts, trade disruption and energy insecurity linked to conflict in the Middle East. The government said these pressures risk undermining development gains and increasing instability across the Indo-Pacific, according to the report.

Meanwhile, the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), has completed four years since it was first signed and has played a key role in propelling India's exports and enhancing trade between the two countries.

India's exports to Australia have more than doubled, rising from USD 4 billion in FY 2020-21 to USD 8.5 billion in FY 2024-25. During 2024-25, total bilateral trade stood at USD 24.1 billion, while India's exports to Australia recorded an 8 per cent growth over the previous year. In FY 2025-26 (up to February), India's total trade with Australia stood at USD 19.3 billion, according to data compiled by India's Commerce Ministry.

Under the India-Australia ECTA, India granted preferential market access on 70.3 per cent of its tariff lines, covering 90.6 per cent of trade value, while Australia granted preferential market access to 100 per cent of imports from India. Of this, 98.3 per cent of tariff lines became duty-free immediately upon implementation, while the remaining 1.7 per cent (113 tariff lines) are being phased out over five years. From 1st January 2026, all Indian exports are eligible for zero-duty market access into Australia.

- IANS