Recalibrating the future of India-Australia relations

Hindustan Times

13-06-2025

Five years ago, India and Australia elevated their relationship to a Comprehensive Strategic Partnership (CSP), a diplomatic milestone that reflected not only a convergence of values and strategic interests but also a shared vision for a free, open, and inclusive Indo-Pacific. The June 4 visit to New Delhi by Australia's deputy prime minister and defence minister Richard Marles to mark the anniversary of the CSP is not merely an occasion for ceremonial stocktaking, it is a pivotal moment that calls for a bold, forward-looking recalibration. India and Australia must now move beyond incremental progress and embrace a transformational vision for their partnership in the Indo-Pacific.
CSP has already delivered substantive gains: robust defence cooperation, deepening economic ties, burgeoning technology linkages, and vibrant people-to-people engagement. And yet, the Indo-Pacific today is more volatile and contested than it was in 2020. Great power rivalries have sharpened, regional fault lines have widened, and internal complexities in both countries demand strategic clarity. To build on, and surpass, the achievements of the last five years in the next five, we must dismantle structural impediments, correct asymmetries, and advance a series of focused, high-impact initiatives that re-imagine the bilateral canvas.
First, the economic pillar of CSP needs to evolve beyond tariff liberalisation and traditional trade. While the Economic Cooperation and Trade Agreement was a historic breakthrough, it must now serve as a stepping stone to a much more ambitious Comprehensive Economic Cooperation Agreement (CECA). A forward-leaning CECA must encompass services trade, facilitation of investment, regulatory harmonisation, digital governance, and intellectual property frameworks.
A catalytic opportunity lies in unlocking Australia's vast institutional capital — especially its AUD 4 trillion superannuation funds — for investment in India's infrastructure, green transition, and digital innovation. India, in turn, could consider establishing a bespoke sovereign risk mitigation facility to de-risk and incentivise long-term Australian investment in priority sectors.
Second, the 2022 critical minerals investment partnership remains an underleveraged strategic asset. With the global shift towards clean energy and the imperative to de-risk supply chains from Chinese dominance, this partnership must be elevated into a formal institutional mechanism. A joint India–Australia Critical Minerals Development Corporation, underwritten by concessional finance, technology sharing, and export-import arrangements, could bridge the gap between policy intent and commercial viability.
Third, defence cooperation — though significantly enhanced — must now enter a new phase anchored in industrial collaboration. India's drive towards defence indigenisation under the Atmanirbhar Bharat initiative opens up promising avenues for joint research and development, co-development, and co-production. A dedicated Defence Innovation and Industrial Corridor linking Indian and Australian MSMEs, research universities, and start-ups could become a flagship initiative. Emerging domains (autonomous maritime platforms, undersea surveillance, and space-based intelligence) warrant deeper trilateral collaboration with trusted Quad partners.
Fourth, diaspora-related frictions, notably around the fringe Khalistani separatism, have at times complicated bilateral diplomacy. Such issues, often inflamed by misperceptions and misinformation, need calibrated responses. Robust law enforcement must be complemented by more strategic and sustained engagement with the diaspora. An India–Australia Diaspora Dialogue Forum (comprising civil society leaders, scholars, and young professionals) can serve as a platform to deepen mutual understanding, temper polarising narratives, and anchor people-to-people ties in shared civic values. India's public diplomacy, too, must evolve, moving beyond cultural showcasing to substantive policy dialogues, youth exchanges, and think tank residencies.
Fifth, education and innovation must now occupy the frontline of bilateral engagement. With Australia a preferred destination for Indian students, the next frontier lies in two-way academic mobility and co-creation of knowledge ecosystems. We propose the establishment of a bi-national University of Indo-Pacific Studies, with campuses in both countries, as a world-class hub for research in maritime law, AI, sustainability, and public policy. A complementary Australia–India Innovation Corridor, connecting IITs, Australian universities, and innovation clusters, can tackle grand challenges in climate tech, health, digital public infrastructure, and food systems.
Encouragingly, Australia's new institutional footprint in India, be it Deakin University's campus in GIFT City or the University of Melbourne's Global Centre in New Delhi, is setting the stage for a new era of educational diplomacy. But systemic reforms are still needed: Recognition of qualifications, faculty mobility, and regulatory harmonisation must be fast-tracked.
Finally, CSP must become a more proactive force in shaping regional architecture. India and Australia have collaborated well within Quad and IORA, but should now play a leading role in newer multilateral formats — like the Indo-Pacific Economic Framework (IPEF), Partners in the Blue Pacific, and the Supply Chain Resilience Initiative. The time is ripe for trilateral and minilateral initiatives involving Asean, Pacific Island, and African littoral states. Coordinated development finance, digital connectivity programs, and joint maritime security training in third countries can enhance the normative reach of this partnership.
In these five years, CSP has laid a strong foundation. But for the relationship to fulfil its potential, the scaffolding must now become more ambitious, institutionalised, and future-oriented. This is a historical juncture in the Indo-Pacific, and the India–Australia partnership must not just be a bilateral success story; it must become an axis of regional transformation and stability.
Amitabh Mattoo is professor and dean, School of International Studies, JNU, and founding director of the Australia India Institute and Manish Dabhade is associate professor, School of International Studies, JNU. The views expressed are personal.