Increase in South-South trade

Australia for expanding ties with India
Besides mining, agriculture, education and services, which were some of the core areas of bilateral trade and investment between India and Australia at present, Australia was keen to focus on other potential areas of business like food and beverages business, automotive sector, aerospace industry etc, informed Micheal Carter, Counsellor Commercial, Australian Trade Commission.
“India happens to be the fourth largest export destination for Australia, it is a very important strategic partner for trade, but the current export import activity between the two countries is largely confined to mining and mining resources, education, services, agriculture, and more of a resource-based relationship which can be widened. There is a lot of scope for business and possible collaboration in the areas of food and beverages particularly wine, travel and tourism,” he said.

Australia's exports to India was worth around 12 billion Australian dollars last fiscal.

With a fall in demand from the developed countries like USA, Germany, and the UK, a number of countries are beginning to look for new key trade partners. Although, India is the 4th largest destination for India, Australia is trying to expand trade. This is very critical for countries (like India and Australia) that have a robust banking system in place. For such countries, demand will either come from within (i.e., domestic consumption) or from external sources (i.e., non USA, UK type countries)
Expect to see more trade agreements in the future.