The Australian government has decided to invest over Aus$280 million (more than Rs 1,500 crore) to boost cooperation with India and grow businesses in areas such as clean technologies, space, and innovation.

The Australian government launched its 'India Economic Strategy to 2035' programme on Tuesday, and as part of it, will provide an additional investment of Aus$16.6 million to strengthen linkages with India’s key policy and finance institutions and Aus$8.9 million to bolster trade presence in India.

The 'India Economic Strategy to 2035' represents a five-year action plan that responds to evolving opportunities for both countries and forges new partnerships in sectors such as critical minerals, cyber technology, science and innovation, the Australian government's press note said.

Prime Minister Scott Morrison and PM Modi held a virtual meeting as Australia committed Aus$17.2 million to extend the Australia-India Strategic Research Fund, Australia-India Innovation and Technology Challenge. The country also committed Aus$35.7 million for a Green Steel Partnership, and contribution to the International Energy Agency to support cooperation in the commercialization of clean technologies, minerals, and energy.

To deepen space cooperation with India, Australia will also invest Aus$25.2 million to expand the Australian Space Agency’s International Space Investment initiative, along with this Aus$28.1 million to launch a Centre for Australia-India Relations to deepen community ties and engage the Indian diaspora.

India and Australia, both members of the Quadrilateral Security Dialogue or Quad, held their first virtual summit in June 2020, when they upgraded ties to a comprehensive strategic partnership. Since then, the two sides have enhanced defence and security cooperation, signing an agreement that gives their armed forces mutual access to logistics and bases, and have stepped-up collaboration on critical and emerging technologies.

“Our partnership with India is vital as we both strive for stronger, sustainable economic growth and more secure and diversified trade and investment patterns and supply chains. The Government remains committed to the India Economic Strategy and its ambitious goals: to lift India into our top three export markets by 2035, and to make India the third-largest destination in Asia for outward Australian investment," said Minister for Trade, Tourism and Investment, Dan Tehan.

In 2020, India was Australia’s seventh-largest trading partner, with two-way trade valued at $24.3 billion, and the sixth-largest goods and services export market, valued at $16.9 billion. In 2020, India was Australia’s third-largest market for services exports.