The enthusiasm for a free trade agreement (FTA) between Australia and India is evident after a recent event held at Freehills in association with the Australian India Business Council (AIBC). The event was a forum to discuss the merits of a FTA and the opportunities available for Australia and Indian businesses.
According to the Department of Foreign Affairs and Trade, India was Australia’s fastest growing major export market in 2007 with goods and services exports having increased by an annual average of over 32 per cent over the last five years.
Freehills Partner Neil Pathak opened the proceedings, stressing the importance of a FTA and how it was an excellent time for investment. ‘India is now our sixth largest export market so we obviously want to tap into the growing middle class in India and the huge population base there. By the same token Australia, with our rich national resources, provides plenty of opportunities for Indian companies and their growing needs,’ said Pathak.
Dotted among the crowd were Gavin Bell, Freehills’ CEO, Anita Nayar, Indian Consul-General, Harish Rao, President of the AIBC Victoria Chapter and Head of Sundaram Business Services Asia-Pacific region, a number of representatives from Freehills clients (including many ASX top 50 companies) and Indian and Australian business journalists. There were also representatives from the fields of engineering, education, telecommunications, finance and law, not to mention a former Test cricketer..
Many topics were covered including the importance of recognising Indian education qualifications in Australia, the important role of the countries’ infrastructure sectors with respect to the facilitation of opportunities to engage, the supply of uranium and the multi-million dollar business of cricket.
Stephen Manallack, Secretary of the AIBC in Victoria, facilitated the discussion. The importance of complimentary needs was raised first—the need of satisfying each other’s demands rather saying Australians can do it better.
Need for Indian qualifications to be recognised
The lack of recognition of Indian qualifications was a popular issue of contention which the FTA would need to address. Harish Rao went on to discuss how impressed Australians have been with the quality of the work from his business services company. ‘Australians say the work is as good, if not better than the work that’s being done in Australia. The people of India can do the work, there’s no doubt about it, but the question of recognition of qualifications does really need to be addressed.’
Making inroads with infrastructure
Engineering firms are contributing to India’s economy through infrastructure such as highways and technology parks. The upcoming Commonwealth Games in 2010 has also stimulated growth. Wayne Lewis, Deakin University, gave an astute example of the rapid growth in infrastructure.
‘If you look out the window you will see a town [Melbourne] of around about 3 and a half million, 4 million people. If the senior government in India was to maintain its current infrastructure, that’s not to build any new roads for existing cities, but just the population growth of around about 20-odd million a year, it would have to build the infrastructure for a city the size of Melbourne every 14 weeks. If you just think about the opportunities, they’re just absolutely tremendous.’
It’s not all just big business
Once the domain of larger Australian companies, now many small and medium enterprises are entering the Indian market. Deregulation and liberalisation in India have encouraged this influx.
‘Part of our role of the AIBC is to support this activity, point people in the right direction and work hand-in-hand with the people at Austrade. We want to make sure that Australians are on the ground over there and we want them to find the right partnerships,’ said Manallack. ‘Finding the right partner is one of the big issues around the world on trade but particularly between India and Australia.’
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