India-Australia Economic Relations


  • The economies of Australia and India are highly complementary with great potential for economic cooperation and trade. For instance, the rapid growth of the Indian population and economy has sparked huge demand for energy resources and agricultural products.
  • Both countries are members of regional organizations including the Indian Ocean Rim Association for Regional Cooperation and ASEAN Regional forum. It is interesting to note that one third of the exclusive economic zone of Australia lie in the Indian Ocean, and a significant portion of the country’s coal, iron ore, liquefied natural gas and other resources is transported through the Indian Ocean.
India-Australia FDI synopsis

Share of Australia in FDI Equity Inflows in India (as on December 2016)

Rank: Australia ranks 24th

Percentage share of total FDI inflows: 0.27%

Cumulative FDI Inflows from Australia: US$ 600.67 millions

  • The investment relationship between the two countries is less developed than bilateral trade ties.
  • According to the report of Australian Bureau of Statistics (ABS) by the Government of Australia, India was the 23rd largest source of international investment in Australia in 2014, with a stock of A$11 billion of investment, or less than half of one per cent of the total stock of foreign investment in Australia that year. And that total stock of investment included just A$0.9 billion of foreign direct investment (FDI), meaning that India accounted for just 0.1 per cent of the total stock of FDI.
  • According to transactions-based data from FDI Intelligence, coal oil and gas has been the largest Australian destination by value of Indian investment, followed by investments in alternative/renewable energy. On the other hand, the greatest number of Indian investment projects to date is associated with the software and IT services sector.

Investment by sector, 2003-2015
Leading Sector US $ Millions
Coal, Oil, and Gas 5361.5
Alternative/Renewable Energy 1354
Metals 463.7
Software & IT Services 441.1
Financial Services 430.4
Transportation 161
Business Services 109.2
Other Sectors 88.3
Automotive 18.7
Biotechnology 5.4
Communications 4.1
Total 9228.8

Natural Resources

  • Adani Group
  • Aditya Birla Group
  • Aditya Birla Group (Copper Mines)
  • Gujarat NRE Coke Ltd. (Coal Mines)
  • GVK
  • International Coal Ventures Private Limited
  • Jindal Steel and Power Limited
  • JSW Steel
  • LancoInfratech Ltd.
  • NMDC
  • Petronet LNG Ltd.
  • Sterlite Industries (Copper Mines)
  • Vedanta

  • GMR


  • HCL
  • Infosys
  • Mahindra Satyam
  • Penta Soft Infotech
  • Tata Consultancy Services
  • Wipro

  • Argyle Diamonds
  • BHP Billiton Ltd.
  • CSR Limited
  • Rio Tinto


  • CIMIC Group Limited

·         SnowyMountain Engineering Holdings Limited

Investment Banking and financial services

  • AMP Limited
  • Macquarie Group Limited


  • TNT Express


  • Telstra Corporation Limited

Information Technology

  • Australia and New Zealand Banking Group Limited


  • Fosters Group
Australian investment in India
  • An analysis of FDI flows into India from Australia reveals that investment from Australia has risen off a low base since the announcement of India’s new industrial policy in August 1991. Australia’s FDI in India as a percentage of total Indian FDI has remained low and relatively constant.
  • Australian investment in India attracts industries such as chemicals, food and beverage, personal and household goods, retail, media, specialized consumer services, banks, real estate, healthcare, industrial goods and services, oil and gas and utilities.

Around 100 Australian companies have set up offices in India.

FDI Equity inflows from India in Australia FDI Equity inflows from Australia in India are:
  • Banking and telecommunications sectors
  • Hospitality
  • Manufacturing
  • Natural Resources
  • Software
  • Agriculture & Mining
  • Automobile Industry
  • Construction and materials
  • Consultancy Services
  • Finance, Insurance and Business Services
  • Hotel & Tourism
  • Manufacturing
  • Metallurgical Industries
  • Services Sector
  • Telecommunications