India- Australia Relations

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India- Australia relations

India’s relations with Australia date back to when they were both part of the British Empire. They share a history of strong economic, political, cultural and sporting ties. Both countries work together in a number of organisations. They are both part of the Commonwealth of Nations and are also founding members of the United Nations. They are also members of regional organisations including the Indian Ocean Rim Association for Regional Cooperation and ASEAN (Association of South East Asian Nations) Regional forum. Australia and India have also both welcomed the decision to make the G20 the premier forum for international economic cooperation. Australia supports India’s candidature for becoming a permanent member of a reformed United Nations Security Council and it also attended the South Asia Association for Regional Cooperation Summit as an observer in April 2010.

Australia is an important economic partner of India. As of 2007, bilateral trade between the two countries totalled A$10.7 billion, having grown from A$4.3 billion in 2003. Australia mainly exports mined and agricultural goods to India, while India's chief exports are pearls, precious and semi-precious stones, textiles and clothing.

In 2007, the Australian government led by the then Prime Minister John Howard of the Liberal Party agreed in principle to sell uranium to fuel India's nuclear reactors. Howard reversed a previous policy of not selling uranium to non-signatories of the nuclear Non-Proliferation Treaty, saying that it would lessen the burden on fossil fuels and encourage India to join the nuclear mainstream. However the Rudd-led Labour Party government that came to power later that year rescinded the plan and reverted to the previous policy of not selling to non-NPT signatories.

Over 97,000 Indian students enrolled in Australia in 2008, representing an education export of A$2 billion. However relations between Australia and India became strained in 2009 after reports of attacks on Indian students in Australia. High level talks were held between officials of the two governments, Indian External Affairs Minister S.M Krishna met Australian Prime Minister Kevin Rudd in 2009 and both parties agreed to a multitude of remedial measures that should be undertaken to resolve the issue.

Prime Minister Rudd recently announced the need to strengthen India- Australia relations and announced that Australia would upgrade its diplomatic resources in India. Subsequently, Australia is enlarging its missions in Delhi, Mumbai and Chennai and is establishing new Austrade offices in a number of other regional cities.