By Neena Bhandari, IANS
Sydney : Indians’ fascination for the yellow metal has led India to become Australia’s fourth-largest merchandise export market in 2006-07, with gold exports comprising nearly half of all merchandise exports to the country.
Exports to India increased 37 percent in 2006-07 as against 22 percent in 2005-06. Over the last five years, as the burgeoning Indian middle class consumes more Western products, Australian exports have increased at an average annual rate of 41 percent.
Australian merchandise exports to India are worth AU$10.1 billion, up AU$2.7 billion. The growth is driven largely by gold, though agricultural exports rose 47 percent, minerals and fuels rose seven percent, exports of manufactures rose 34 percent, and other goods rose 71 percent.
The major commodity movements during 2006-2007 were: gold (including gold re-exported after industrial processing) amounting to AU$ 4.7 billion, up $1.8 billion (63 percent); copper ores amounting to AU$1.0 billion, up $165 million (19 percent); and vegetables exports worth AU$150 million, up AU$99 million (191 percent).
Emphasising the importance of Asian markets for Australia’s merchandise export performance, Trade Minister Warren Truss said Monday that “exports to Japan, China, Korea and India accounted for 47 percent of all merchandise exports, compared to 34 percent in 1999-2000. These figures demonstrate the increasing importance of Asia to Australian exporters”.
Truss said that resources and manufacture exports contributed strongly to this growth, helped by high commodity prices.
Australia’s merchandise exports continue to enjoy significant growth, growing by 10 percent in 2006-07 to AU$168 billion.
Earlier, while delivering the Australia India Business Council (AIBC) Accor-Qantas India Independence Day luncheon speech on “Breaking New Ground” in Adelaide, Truss had said, “The success of Australia’s long-term engagement with India will rely heavily on the commercial links built up by Australian businesses”.
Australia is committing significant resources to strengthening the bilateral relationship because, the minister said, “We see a future of great dynamism and ambition. And I certainly think it is in both our interests to deepen our commercial and business links. An important development is that we are finalising discussions with India about a possible joint feasibility study for a bilateral Free Trade Agreement (FTA).”
In 2006-07 India was Australia’s largest market for gold, second-largest market for coal and copper ore, and third-largest market for wool. Australia has also agreed to allow the export of uranium to India, subject to strict conditions.