India-Australia trade to exceeds $16B
By agencies   |   Monday, 06 March 2006, 20:30 IST
Printer Print Email Email
New Delhi: With the visit of Australian Prime Minister John Howard to India is expected to boost prospects of India-Australia bilateral trade to $16 billion by 2010 from the current level of $7.5 billion, according to projections made by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). It is expected that the trade surplus will remain in Australia’s favor even by 2010, as there exists a substantial difference between India's imports from Australia against its exports. As per the latest estimates, India’s imports from Australia are estimated to be $6 billion against exports, which have been estimated at$ 1.5 billion. According to the Assocham’s release, the major items that India imports from Australia include gold, coal, diamond, copper ores and wool. India’s exports to Australia include gems and jewellery, metal machinery and instruments, cotton yarn, fabrics and made-ups and readymade garments. As per the findings of the industry body, gold is Australia’s main export to India, which at current level is valued at over $ 2.5 billion. Australia supplies 25 percent of India’s gold requirement, which will go up manifold, as India will prefer Australian gold because of its qualitative superiority. Australian coking coal worth $ 1.2 billion is used in more than 50 percent of steel produced in India and India’s power sector has been lobbying hard to import coal from Australia because its coal has low ash content and is deemed fit for generating power. The government has already reduced import duty on coal from 5 percent to 0 percent purely because of the reason that India will in future liberally import coal from Australia to generate power to meet its growing energy needs. As per the estimates of the Chamber, Australia coal exports to India will form a major trade basket of India’s imports from Australia in future.

siliconindia