Government puts mining in the lead in response to India Economic Strategy

The Australian Government has acknowledged mining’s crucial role in our trade and investment partnership with India in its response to the India Economic Strategy to 2035, prepared by Mr Peter Varghese AO.

As the world’s fastest growing large economy, India presents significant opportunities for Australia’s minerals sector – which is why our latest New Frontiers report launched by Minister for Trade, Tourism and Investment, Simon Birmingham last month focuses on India.

As outlined in our New Frontiers report, the establishment of the Australia-India Mining Partnership at the Indian School of Mines is an important initiative to showcase Australian mining technological innovation and Australia’s world-leading expertise in mining governance and environmental management.

The Government’s announcement to establish a consulate in Kolkata in the first half of 2019 should also be of particular value to Australian small and medium METS companies.

Australia-India trade was worth $27.4 billion in 2017. Australia’s minerals sector has had a big role to play in this trade relationship, which has grown from Australia’s ninth largest to fifth largest trading partner in five years.

In 2017, Australia’s minerals exports were worth more than 71 per cent or $11.2 billion of our $15.7 billion in merchandise exports to India.

Coal (mostly metallurgical) was worth $9.2 billion, a growth of 38 per cent in 12 months and an 11 per cent annual growth trend over the past five years, with other key minerals exports including gold ($689 million) and copper ($688 million).

Every minute, 30 people in India are moving to a city – the equivalent of Australia’s population urbanising every 19 months.

With 300 million people in India still not connected to the electricity grid, and 500 million people depending on biomass for cooking, India is expected to add the equivalent of the European Union’s current power generation capacity to meet expected energy demand to 2040.

Australia is therefore well placed to help meet India’s energy demands, including the supply of coal to India’s new high energy, low emission power plants which will help India in meeting its Paris Agreement targets.

There will also be opportunities for the A$90 billion METS sector as India’s mining industry modernises and explores potential efficiency, productivity and safety improvements.

As the government’s response acknowledges, mining and resources should remain one of the ‘lead sectors’ for Australia’s economic engagement with India.

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