MCC hosts HC of Australia in India

In an Interactive Session organised by MCC Chamber of Commerce & Industry (formerly Merchants’ Chamber of Commerce) today H.E. Mr. Peter N. Varghese, High Commissioner of Australia in India said that both the countries are committed to strategic partnership in trade and investment. Australia will play a significant role in providing energy security to India in supplying coal and also uranium to India’s Nuclear power plants. Bilateral trade has witnessed over 15 p.c. annual growth and expected to double the volume by next 5 years. Both the countries are actively deliberating on the Comprehensive Economic Cooperation Agreement which would further boost up the bilateral trade and investment. He highlighted on areas of cooperation in trade and investment between India and Australia in the financial sectors – specifically banking and insurance. He mentioned that four Australian banks have already marked their presence in India which would emphasise on trade and investment activities, rather than retail banking. Although Australian companies have entered into Joint-Ventures in the insurance sector, policy restrictions like the ceiling of FDI in insurance sector to 26 p.c. is hindering the growth. FDI from Australia is in general low, only US$ 462 mn from April 2000 to June 2011, because of public policy restrictions He said that education is a very important connecting link between the two communities as Indians are the second largest student community in Australia. He expressed his country’s interest in collaborative research projects, dual post-graduate degree programme, staff & student exchange programme. Australia is chalking out plans for starting vocational training programme in India. It has 300 Institutional Partnership Programmes in Australian University-level that are awaiting Indian response. Keeping in view the potential in the mining sector, he hoped that Indian mining investment in Australia would grow by US$ 20 bn in the next 5-7 years. West Bengal’s significant Steel industry which is in much need of coal and iron ore can get raw material security from Australia. Shri Deepak Jalan, Sr. Vice President of MCCI, in his welcome address mentioned that bilateral trade in goods between the two countries has witnessed a considerable growth - from US$ 10 bn in 2005-06 to US$ 18 bn in 2010-11. India’s exports to Australia were US$ 2 bn, while India’s imports from Australia were US$ 16 bn. for the year 2010-11.