India–Australia Relations 2026: CECA, ECTA, Trade, Defence & Strategic Partnership

Why in news ?

• On 9 July 2026, Prime Minister Narendra Modi addressed the Australia–India CEO Forum and the Economic Roadmap Business Event in Melbourne, Australia, where he invited Australian companies to make long-term investments in India.
• He also urged both countries to expedite the conclusion of the proposed Comprehensive Economic Cooperation Agreement (CECA).
• Australian Prime Minister Anthony Albanese was also present at the event. More than 200 leading business leaders, investors, and trade representatives from both countries participated in the programme.

India–Australia Historical ties and missions: 

• Australia–India relations date back to pre-Independence times. India opened a trade office (later Consulate-General) in Sydney in 1941, and in March 1944 Australia appointed its first High Commissioner to India. 
• Today Australia has five missions in India: a High Commission in New Delhi and Consulates-General in Bengaluru, Chennai, Kolkata and Mumbai. (In 2024 Australia also opened a new Consulate-General in Bengaluru.) 
• India’s diplomatic presence in Australia includes a High Commission in Canberra and Consulates in major cities.

Comprehensive Strategic Partnership (CSP): 

• In June 2020 India and Australia elevated their bilateral relationship to a Comprehensive Strategic Partnership. 
• This reflects a shared vision of a free, open and prosperous Indo-Pacific, grounded in common democratic values, mutual trust and people-to-people ties. 
• The CSP covers cooperation in areas such as science & technology, maritime security, trade and investment, defence, agriculture, education and tourism.

High-level dialogues and summits: 

• A notable sign of close ties is the annual leader-level summit, one of only three such regular summits India holds with any country. 
• The first Australia–India Annual Summit was held on 10 March 2023 in New Delhi (during PM Albanese’s visit), and the second on 19 November 2024 on the sidelines of the G20 Summit in Rio de Janeiro. 
• Foreign and Defence Ministers meet biennially in a “2+2” format, and Foreign Ministers hold an annual Framework Dialogue. 
• Since 1989, Trade Ministers meet via a Joint Ministerial Commission to advance economic ties. Both countries also engage closely in multilateral forums like the Quad, G20, and East Asia Summit.

India–Australia People-to-people links: 

• The Indian diaspora in Australia now numbers nearly one million. According to the 2021 Australian Census, 976,000 Australians reported Indian heritage (2.6% of the population), including 673,000 Indian-born people. 
• The Indian-Australian community is Australia’s second-largest and fastest-growing overseas-born group, forming a “living bridge” between the countries. 
• Punjabi is the fastest-growing language in Australia; Hindi is also among the top 10 spoken languages. 
• India became Australia’s largest source of skilled migrants and (since 2017) its second-largest source of international students. 
• In May 2023, the two Prime Ministers signed a Migration and Mobility Partnership Arrangement to facilitate two-way mobility for students and professionals and enhance cooperation on irregular migration.

People-to-people institutions: 

• Australia launched the Centre for Australia–India Relations (in Parramatta, Sydney) in May 2023 to deepen cultural and commercial links. 
• The Centre runs scholarships, fellowships and grants (the “Maitri” programs) and promotes engagement via programs like the Australia–India Leadership Dialogue and Australia–India Youth Dialogue. 
• In March 2025 the Australian Parliament appointed Chair and CEO for the Centre. 
• These initiatives aim to leverage the Indian-Australian diaspora, boost cultural exchanges, and help Australian businesses access Indian markets.

India–Australia Economic and Trade Relations

Complementary economies: 

• Australia and India are highly complementary. Australia supplies raw materials and expertise (minerals, energy, technologies) that India needs, while India provides a vast market and STEM-skilled talent. India is now the world’s fastest-growing major economy, offering diversification of trade and supply chains for Australia.

Economic Cooperation & Trade Agreement (ECTA, 2022): 

• The landmark India–Australia ECTA entered into force on 29 December 2022.
• Under ECTA, 90% of Australian goods exports to India (by value) are now tariff-free, and 100% of imports from India to Australia enjoy zero tariffs. 
• This was India’s first free trade deal with a developed country in a decade. By end-2024, merchandise trade had more than doubled compared to pre-ECTA levels (from US$12.2 billion in 2020–21 to US$26 billion in 2022–23). 
• The Australian High Commission reports two-way trade at about US$49 billion in 2023, likely counting services. From April–Nov 2024 bilateral goods trade totaled US$16.3 billion.

Trade diversification: 

• ECTA has boosted sectors like textiles, chemicals, agriculture and opened new lines (e.g. gold jewellery, turbojets). 
• It eased imports of key inputs for India’s industry (iron ore, cotton, wood). Australia’s exports to India (2022–23) were about A$32.4 billion, while imports from India were A$12.6 billion. (India was Australia’s 4th-largest export market and 5th-largest overall trading partner in 2023.) 
• Australia’s investment stock in India is A$17.6 billion; Indian investment in Australia is A$34.5 billion.

Ongoing negotiations – CECA: 

• Both governments are negotiating an ambitious Comprehensive Economic Cooperation Agreement (CECA) to build on ECTA.
• CECA talks began in 2011 but were stalled in 2016; they resumed in 2021 and have now completed ten formal rounds (with inter-sessional talks). 
• Officials in Dec 2024 held a joint “stocktake” in New Delhi to chart progress. The 2023 Australia–India Summit urged officials to “swiftly progress” CECA and conclude it early to unlock the full potential of the trade relationship. 
• Both countries target bilateral trade of AUD 100 billion by 2030.

Sectoral cooperation – resources & energy: 

• India’s rapid growth and carbon-reduction goals create huge demand for minerals and clean energy.
• Australia and India have launched partnerships in critical minerals and renewable energy. 
• In November 2024 the two PMs unveiled an Australia–India Renewable Energy Partnership, committing joint work in eight areas (solar PV, green hydrogen, energy storage, recycling, two-way investment, skills, etc.). 
• This builds on a Solar Taskforce and Green Hydrogen Task Force already active in 2023. 
• The Green Steel Partnership helps meet India’s steel needs sustainably. The Critical Minerals Investment Partnership fosters new supply chains for minerals (lithium, rare earths) vital to EVs and battery industries. Joint initiatives like the India–Australia Minerals Scholar Network train talent for green industries.

Agriculture & market access: 

• Both sides have ongoing efforts to expand agri-trade. Market access is being negotiated bilaterally; for example, Australia gained access for Hass avocados (Dec 2022) and India granted market access for Australian pomegranates (Sep 2020) and avocados. 
• Vice versa, India now exports more horticulture to Australia (e.g. okra). The leaders encourage collaboration on climate-smart agriculture and food security in Indo-Pacific fora.

Investment & business links: 

• Australia encourages investment in India (and vice versa). High-level forums include the Australia–India CEO Forum (revived 2023) and five Joint Working Groups (on sectors like mining, education, etc.) whose reports have guided policy. 
• In 2024 Australia launched a New Roadmap for Australia’s Economic Engagement with India (Feb 2025), focusing on clean energy, education & skills, agribusiness, technology and tourism. 
• This builds on the 2018 “India Economic Strategy to 2035” report, aiming to translate private-sector plans into state-level and institutional partnerships. 
• The leaders also extended the Australia–India Business Exchange (AIBX) program, which supports SMEs and startups to collaborate.

India–Australia Science, Technology and Innovation 

India–Australia Education ties: 

• Education is a major pillar. Australia’s education exports to India were about A$4.4 billion in 2022. 
• Indian students are the second-largest foreign student group in Australia (about 120,000 in Feb 2024, 17% of all international students). 
• In Nov 2023, both countries launched an Education Strategy for India, aiming to expand university collaborations, joint degrees and mobility under the Australia–India Education and Skills Council (AIESC). 
• In March 2023 they signed a Mutual Recognition of Qualifications arrangement (easier credit transfer and recognition of degrees). 
• Notably, Deakin University and University of Wollongong received approval to open campuses in India (in GIFT City, Gujarat), making them the first Australian universities with overseas teaching campuses.

Science & research: 

• Australia and India have shared research initiatives. Since 2005 the India–Australia Strategic Research Fund (AISRF) has supported joint projects; by 2023 they were inviting applications for the 16th round (A$10 million per round). 
• In the 2023 summit, the leaders also inaugurated joint innovation challenges (e.g. a circular-economy hackathon, the RISE accelerator for cleantech SMEs). 
• Indian and Australian innovation agencies (NITI Aayog’s Atal Innovation Mission and CSIRO) signed an MoU in 2023 to deepen tech collaboration.

Space cooperation: 

• The space partnership has grown rapidly. In Jan 2022 ISRO and Australia’s Space Agency formalized cooperation (including support for India’s Gaganyaan human spaceflight). 
• In 2023 Australia conducted a telemetry site survey at Cocos Islands (for ISRO) and announced funding of A$18 million for joint space projects under an International Space Investment program. 
• A space agency MoU was signed in Nov 2024 covering crew-return support for Gaganyaan.
• Indian NewSpace firms (like Skyroot) are launching satellites for Australian customers; e.g. an Australian satellite is scheduled for launch on an Indian rocket in 2026. 
• Both sides co-promoted space industry cooperation at international forums (e.g. Australia was Innovation Country at India’s Space Expo 2024 and an Indian delegation attended Australia’s Space Forum).

Defence and Security Cooperation

• Mutual Logistics Support : In 2020 India and Australia became Comprehensive Strategic Partners, and in 2021 they signed a Mutual Logistics Support Agreement (MLSA). 
• MLSA provides reciprocal access to military bases and supplies (fuel, food) and has greatly enhanced interoperability.

Defence exercises and dialogues: 

• Defence engagement has intensified. Australia hosted the multinational Exercise Malabar (naval) for the first time in 2023 (with US, Japan and India). 
• In 2024 Australia participated in India-led La Pérouse and observed Malabar. 
• India’s Navy visited Australia’s Cocos Islands in 2023 (the first such Indian port-call). Indian Navy and Air Force regularly participate in Australian exercises (e.g. Kakadu naval exercise, Pitch Black air exercise, Exercise Southern Jackaroo).
• The first all-services tri-service exercise “AUSTRAHIND” was held in Nov 2023 (Army, Navy, Air), and again in Nov 2024. 
• Australia participates in India’s biennial land exercise Yudh Abhyas and observer in Talisman Sabre. Both countries’ Chief of Defence Staff and service chiefs have made reciprocal visits.

2+2 and ministerial talks: 

• India–Australia hold a 2+2 Dialogue (Foreign and Defence Ministers) every two years. 
• The first 2+2 meeting was in 2021, and subsequent ones in 2023 (Canberra) and 2025. 
• The leaders have announced plans to renew the Joint Declaration on Defence and Security Cooperation in 2025 to reflect deepening ties. 
• At the Nov 2023 2+2, the Ministers committed to expanding cooperation in 2024 on maritime awareness, joint exercises, S&T collaboration and information-sharing. 
• In 2024 India’s Defence Minister held talks with his Australian counterpart on the sidelines of ASEAN and AUKMIN meetings.

Other security links: 

• Both countries are Quad members and often align on Indo-Pacific security issues (e.g. South China Sea tensions). 
• They conduct trilateral naval exercises with Indonesia (e.g. Exercise Samudra Shakti) and dialogue with France (INDO-PACOM). 
• They signed Mutual Legal Assistance and Extradition Treaties (entered force 2011), a Social Security Agreement (2016), and an MOU on cyber cooperation (2023). 
• In March 2025 the two countries, along with Indonesia, held their second maritime security workshop.