Australia's trade relationship

with India

Geography: In southern Asia, bordering the Arabian Sea and the Bay of Bengal,
between Burma and Pakistan and bordered in the north by Nepal and China. Total
area is 3,287,590 sq km, about 40 per cent the size of Australia.

Population: 1,080.3 million (2004)

Capital: New Delhi

Government: Federal republic

Currency: Indian Rupee

Trade: India is our 6th biggest export destination and our total trade is worth over
$7.4 bn. As India’s industry develops and the middle class grows, it may become an
even bigger market for our natural resources as well as consumer items. Australia
and India have some common history and culture as well as a similar political system.
India is a geographically and culturally diverse nation.

Major Australian exports, 2004 (A$m) Major Australian imports, 2004 (A$m)

Non monetary gold 2,870 Pearls and gems 83

Coal 1,190 Textile manufactures 54
Australia’s trade with India
Copper Ores 409 Floor coverings 40
Wool 155 Jewellery 34
Other Ores 46 Crustaceans 33

Student activities:
Many people think India will be a big future market for
Australian companies.
(1) What are three features that make doing business with
Source: DFAT.
India attractive?
(2) Name two things that Australia and India have in
common.
(3) India produces many motor vehicles for local use as well as
export. A major manufacturer is the Tata company. Find out
their story at www.tatamotors.com
One model they produce is the Indica. Go to http://indica.
tatamotors.com/indica2004/pricing_2.asp and find out how
much an Indica DLE BSIII would cost if you lived in Delhi.
How much is this in Australian dollars? Assume one Australian
dollar equals 35 Rupee.

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