'Australia-India trade to reach AUD40 billion in 3 years'

Australian Trade Commissioner Patrick Kearins on Wednesday said that the trade with India is poised to reach AUD40 billion in the next three years.

"India is Australia's fourth largest trading partner. The growth in two-way trade reached $22 billion (Rs1.1 lakh crore) in 2010-11, and is expected to reach $40 billion in the next three years," said Kearins, who was here for a seminar organised by the Australian Trade Commission.

"The agreement for closer economic cooperation with India has reached the third round of negotiations...which is somewhat like a Free Trade Agreement (FTA)," he said.

"The type of advantages that could come from it are particularly on the investment side, for both the nations," he said.

The agreement could also help restore the trade balance which is presently in the favour of Australia, he added.

"The trade from Australia currently is between AUD 16-17 billion," he said, adding that it was owing to exports of coal from Australia as India's energy demands are high.

The bilateral trade, in the last five years, has grown 25% per annum on average, led by resources and minerals, non-monetary gold, and education, the three traditional sectors.

Kearins indicated that investment of as much as half a billion AUD could flow into India in sectors such as infrastructure, manufacturing, Information Technology (IT), mineral and resources.

The Indian investments in Australia have reached around $10 billion (Rs50,000 crore), he said.

Australia, which witnessed a slowdown in 2011, has projected a GDP growth of 3.3% this year.

"Last year there was a slowdown in Australia. The GDP growth of 1.8% was below the forecast, but the forecast for this year is 3.3%," Kearins said.

Accompanied by Director, Corporate Relations, University of Wollongong, Craig Peden; Kearins said launching courses in India on mining and automotive sector, aiming at skill based training, was `a strong focus area' for Australia.

The University of Wollongong has partnered with Gujarat NRE Coke to do due diligence on offering courses in Indiaand checking feasibility of setting up a campus in Gujarat.

"An MoU was signed with the CMD Gujarat NRE Coke, Arun Kumar Jagatramka, for doing due diligence on tertiary market in India. Yes, we have eyes on Gujarat," Peden said, in reply to a media query on whether they were looking to set up campus in Ahmedabad.