INDIA HOPES FOR BETTER MARKET ACCESS FOR AGRO PRODUCTS IN AUSTRALIA
POTENTIAL
FOR GREATER INDO-AUSTRALIAN TRADE UNDERLINED
AUSTRALIAN
FOREIGN MINISTER MEETS MARAN
The
need to tap the vast potential for greater bilateral trade between
India and Australia was underlined at a meeting between the Australian
Foreign Minister, Mr. Alexander Downer and Shri Murasoli Maran,
Union Minister of Commerce & Industry, here last evening.
While noting that this potential remains untapped despite the
two-way trade – currently estimated at US $ 1.4 billion ($ 1449.63
million) -- having more than doubled in the past decade, the Indian
side urged greater market access especially for Indian agro products
in Australia and expressed the hope for favourable quarantine
regulations so that India could start exporting mangoes and other
food items to Australia. Australia’s imports from India account
for only 0.6% from its total imports and, hence, the scope for
sourcing more of its requirements from India, Shri Maran said.
It was also indicated that the Export Inspection Council of India
and the Australian Quarantine and Inspection Service had been
jointly working to develop a Memorandum of Understanding (MoU)
for recognition the equivalence of food inspection and certification
systems covering fish & fishery products exported from India
to Australia and the MOU is now ready for signing. Shri V. Govindarajan,
Secretary, Department of Industrial Policy & Promotion and
Shri Atul Sinha, Additional Secretary, Department of Commerce,
were present at the meeting
During
the discussions on bilateral trade, both sides sought tariff reduction
on items of export interest to each other as a means of expanding
bilateral trade. Thus, India has sought tariff reduction on its
textiles and leather products, while the Australian side requested
for reduction in respect of products like macadamia nuts and sultanas.
Shri
Maran invited Australian investors to take advantage of the government’s
liberalised foreign direct investment (FDI) policy as also the
recently announced Exim Policy, in particular the decisions to
permit 100% FDI in food processing, environmental technologies,
drugs & pharmaceuticals, civil aviation and urban development
sectors. Energy, ports, roads and information technology were
listed amongst the potential areas for Australian investment in
India. There is ample scope also for Indo-Australian collaboration
in third countries in areas such as power stations, refineries,
construction jobs, manufacture & installation of transmission
towers etc. Australia today ranks 8th in the list of
top investing countries in India in terms of the cumulative FDI
approved since 1991. However, the inflows have not kept pace with
the approvals, the Indian side pointed out while urging for more
in terms of realised investment. While raising issues of mutual
interest during the discussions, both Mr. Downer and Shri Maran
underlined the warm and cordial relations enjoyed by India and
Australia with their common commitment to the ideals of democracy
and a pluralistic society which should reinforce stronger trade
and economic ties between the two countries.
