India–Australia partnerships17 Apr 2019 09:30
Examining the potential of India–Australia partnerships in mining
Natasha Jha Bhaskar
India-Australia
Mining
Contemporary India–Australia relations can be best described as being loaded in intent but limited in action. Over the years, pledges of “common destiny” have repeatedly been made, only to remain unfulfilled. The 2018 release by the Australian government of its India Economic Strategy 2035 is an attempt to lay down a vision for capturing the opportunities offered by India’s market. Among these opportunities is mining. This brief discusses the challenges facing India’s mining sector and the potential for collaboration therein between Australia and India. India's increasing urbanisation, rising household incomes, and industrial activity will drive demand for greater volumes of resource commodities. Australia can fill the gap by playing its role not only as a resource supplier, but as an enabler, helping India modernise its mining sector and improve efficiency.
Attribution: Natasha Jha Bhaskar, “Examining the Potential of India-Australia Partnerships in Mining,” ORF Issue Brief No. 288, April 2019, Observer Research Foundation.
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Australia–India Mining: The Potential for Synergy
India’s GDP is expected to continue to grow in the next years on the back of economic development, rapid urbanisation, thrust on infrastructure investment, improved private investment, strong industrial activity, and increased consumption. The government’s programmes such as “Make in India” (hike manufacturing share in the GDP from the current 17 percent to 25 percent by 2022), “Housing for all by 2022,” smart cities, “power for all”, modernisation of the railways and aggressive highway construction targets will drive growth at a faster pace in end-user industries. Growth in these industries—including power, cement, construction and infrastructure—will, in turn, boost domestic mineral consumption.[xiii]
India’s metal usage remains low across most metals, as compared to other developing and developed countries. The mining industry, by its very nature, affects a wide variety of stakeholders, triggers various downstream economic activities and, therefore, has a multiplier effect on the economy. With the right policy support, the mining sector can boost GDP; increase state-level and national taxes and royalties; and provide employment, especially in remote areas. The sector has the potential to create six million additional jobs by 2025 and can contribute an additional US$125 billion to India’s output and US$47 billion to India’s GDP by 2025.
Key initiatives that will boost the Indian mining sector are listed below. These are areas where Australia can play a significant role, either directly or by sharing their best practices with India.
https://www.orfonline.org/research/examining-the-potential-of-india-australia-partnerships-in-mining-49983/
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