Strengthening India- Australia Partnership

This editorial is based on “ Powering up the Australia-India clean energy partnership”, which was published in The Hindu on 15/10/2025. The article explains how Australia and India can build a mutually beneficial clean energy partnership by leveraging Australia’s raw material strengths and India’s manufacturing capabilities, while addressing policy, economic, and institutional barriers to advance joint decarbonisation efforts in the Indo-Pacific region.

For Prelims:India-Australia Renewable Energy Partnership (REP), India-Australia Economic Cooperation and Trade Agreement (ECTA), Solar photovoltaic (PV) technology, Critical mineral, Comprehensive Strategic Partnership (CSP) Framework (2020), AUSINDEX. 

For Mains:  Factors Propelling the Strengthening of India–Australia Bilateral Partnerships, Key Challenges Hindering India–Australia Bilateral Cooperation, Measures to Enhance India- Australia Bilateral Partnership 

As climate risks escalate across the Indo-Pacific, the India-Australia Renewable Energy Partnership (REP)  stands out as a vital alliance with global significance. By combining Australia’s mineral wealth and stable investment climate with India’s manufacturing scale and skilled workforce, the partnership aims to unlock new dimensions of renewable growth. Yet, overcoming supply-chain dependence on China, aligning policies, and bridging technological and financial gaps remain central challenges in transforming vision into reality. 

What is the India-Australia Renewable Energy Partnership (REP)? 

• About: The India-Australia Renewable Energy Partnership (REP) is a bilateral initiative launched in November 2024 to deepen cooperation in the renewable energy sector and accelerate the clean energy transition for both nations.  
  • It embodies a strategic framework to foster collaboration in areas critical to decarbonisation, economic growth, and energy security, grounded in the shared commitments of the Comprehensive Strategic Partnership. 
• Priority Sectors: 
  • Solar photovoltaic (PV) technology, including innovation and rooftop solar workforce development. 
  • Green Hydrogen development, focusing on joint technology advancement and market creation. 
  • Energy storage solutions to support grid stability and renewable integration. 
  • Solar and critical mineral supply chains for materials like lithium and rare earths. 
  • Circular economy approaches renewables to promote sustainability. 
  • Two-way investments facilitating giga-scale joint ventures and infrastructure projects. 
  • Capacity building with a focus on skills development, including training young women and men as solar technicians. 
• Governance and Dialogue Platforms: 
  • Formation of the Australia-India 1.5 Track Dialogue, enabling collaboration among governments, industry, and research institutions. 
  • Utilisation of existing bilateral architectures such as the Comprehensive Strategic Partnership and the India-Australia Economic Cooperation and Trade Agreement (ECTA). 

What Factors are Propelling the Strengthening of India–Australia Bilateral Partnerships?  

• Comprehensive Strategic Partnership (CSP) Framework (2020): In June 2020, India and Australia elevated their relationship from a Strategic Partnership (initiated in 2009) to a Comprehensive Strategic Partnership (CSP). 
  • This created a broader, more structured collaboration platform spanning defence, trade, education, climate, technology, culture, and more. 
  • Over five years, the CSP supported more than 32 high-level visits between the two countries and facilitated deeper engagement at leadership levels. 
• Robust Defence and Security Cooperation: Defence cooperation has grown significantly with regular naval, air, and land exercises like AUSINDEX and Malabar, improving interoperability. 
  • India’s participation in Australia’s largest military exercise, “Talisman Sabre 2025”, further deepened operational ties. 
  • The Mutual Logistics Support Agreement (MLSA) enables reciprocal access to facilities, enhancing logistics and maritime domain awareness. 
  • The ‘2+2 Ministerial Dialogue’ brings together Australian and Indian Foreign and Defence Ministers every two years to discuss strategic, defence, and regional security issues, strengthening their Comprehensive Strategic Partnership. 
• Economic and Trade Growth Enabled by ECTA: The India–Australia Economic Cooperation and Trade Agreement (ECTA), a landmark trade deal, was signed in April 2022 and ratified in November 2022, marking a major step toward enhanced bilateral trade and economic integration. 
  • The agreement enables Australian businesses to export over 85% of goods to India tariff-free, a figure set to increase to 90% by January 2026, significantly boosting bilateral trade competitiveness. 
  • The India Economic Strategy to 2035 report projects a 10-fold increase in Australian investments in India, targeting $100 billion by 2035, driven by sectors such as critical minerals, education, and technology. 
• Clean Energy and Climate Initiatives: Launch of the India-Australia Renewable Energy Partnership (REP) in 2024 targets eight cooperation areas, including solar PV, green hydrogen, battery storage, and the circular economy. 
  • REP helps reduce overdependence on China’s dominance in refining and manufacturing of critical renewable components, addressing vulnerabilities revealed by recent export restrictions and pandemic-induced disruptions. 
  • Both nations align climate ambitions—India aiming for 500 GW of non-fossil electricity by 2030 (already 50% non-fossil capacity), and Australia targeting 62–70% emissions reduction by 2035. 
• Education and Skill Development Cooperation: Australia hosted nearly 140,000 Indian students in 2024, making India the second largest source of international students in the country. 
  • The establishment of Australian foreign branch campuses in India is expanding educational exchanges. 
  • Joint skill development projects include training solar rooftop technicians, with special focus on empowering youth and women. 
  • REP includes the establishment of the India-Australia Rooftop Solar Training Academy to train 2,000 technicians (women and youth) by 2027. 
• Science, Technology, and Innovation Collaboration: The Australia-India Strategic Research Fund supports joint projects in science, clean energy, critical minerals, and digital research. 
  • Both countries collaborate on space technologies, including satellite launches and data-sharing initiatives. 
  • Innovation challenges under REP encourage the commercialisation of renewable technology, contributing to smart grids, green hydrogen, and energy storage solutions. 
  • The Australia-India Green Steel Partnership supports India’s growing steel demand while promoting innovative technologies for improved efficiency and sustainability. 
• People-to-People and Cultural Ties: The Indian diaspora in Australia actively supports bilateral relations through business, cultural, and academic links. 
  • Education is Australia’s largest service export to India, worth $4.4 billion (2022). 
  • Indian culture, cuisine, festivals, and Bollywood contribute to vibrant multiculturalism. 
  • Initiatives like the Australia India Institute and the India Australia Friendship Association foster mutual understanding and educational conferences.

What are the Key Challenges Hindering India–Australia Bilateral Cooperation? 

• Overdependence on China in Supply Chains: Both India and Australia are highly dependent on China for critical renewable energy materials and components.  
  • China accounts for nearly 70% of the world's rare earth mining and controls roughly 90% of global rare earths processing. 
  • India sources nearly 15% of total imports from China, including electrical machinery, pharmaceutical ingredients, and battery materials.  
    • Similarly, more than 90% of Australia's imported solar panels come from China, and around 80% of panels in Australia overall are Chinese-made. 
  • This dependence creates strategic vulnerabilities—for example, China’s restrictions on rare earth exports in 2020 disrupted Indian electric vehicle production, halving output in some cases. 
  • A trilateral Supply Chain Resilience Initiative with Japan aims to diversify supply sources and reduce reliance on China, underscoring the urgency of this challenge. 
• Limited Downstream Manufacturing: Australia mainly exports raw minerals like lithium, cobalt, and rare earths but lacks large-scale refining and manufacturing facilities. 
  • As a result, it cannot fully capture the economic value or participate in high-end renewable technology manufacturing, limiting potential bilateral industrial synergies with India’s manufacturing sector. 
  • For instance, despite being the world’s largest lithium producer, Australia imports many finished battery components, while India’s PLI schemes try to build domestic production chains. 
• Regulatory, Certification, and Policy Alignment Issues : Divergent standards and regulations between India and Australia obstruct smooth trade in renewable technologies and critical minerals. 
  • Investors lean towards markets like the EU or the U.S. with predictably harmonised regulations, which cools investment enthusiasm in India-Australia projects. 
  • Harmonising certification for solar panels, green hydrogen production, and battery tech remains a work in progress requiring concerted diplomatic and industry efforts. 
• Geopolitical and Strategic Differences: India’s strategic defence ties with Russia and non-alignment stance contrast with Australia’s alignment with the U.S. and Western defence coalitions. 
  • This divergence causes cautious approaches to technology transfers in defence and related high-tech sectors. 
  • However, increasing alignment over Indo-Pacific security and joint naval exercises like Malabar mitigate these challenges, showing gradual strategic convergence. 
• Trade Imbalance and Focus on Raw Material Exports: India's imports from Australia are heavily coal-dependent, constituting more than 80% of Australia’s exports to India. 
  • This creates a trade imbalance perceived by India as contrary to the mutual goal of sustainable development and cleaner energy. 
  • Both countries are working to diversify trade baskets, but non-tariff barriers, tariffs, and procedural bottlenecks still constrain Indian exports to Australia, especially in MSMEs. 
• Talent Mismatch and Skill Certification Challenges: India provides a large, cost-effective skilled workforce, but not all skills meet Australian industry standards and certification requirements. 
  • Efforts like the Solar Rooftop Technician training initiative help address this, but scaling such programs to high-quality, accredited levels across sectors is complex. 
  • Language and accreditation barriers also pose challenges for workforce mobility and mutual recognition of skills. 

What Strategic Measures Should India Adopt to Enhance Its Bilateral Partnership with Australia? 

• Diversify and Strengthen Trade via Comprehensive Agreements: India should accelerate negotiations for a Comprehensive Economic Cooperation Agreement (CECA) to supplement the existing ECTA, addressing tariff and non-tariff barriers that hamper Indian MSMEs from accessing Australian markets effectively. 
  • The current bilateral trade of $24 billion in FY25 is promising but diversifying trade products and simplifying regulatory frameworks will unleash further growth, especially in sectors like agriculture, pharmaceuticals, and digital services. 
  • Leveraging India’s production-linked incentive (PLI) schemes and Australia’s resource exports can also strengthen supply chains and create long-term industrial ecosystems. 
• Enhance Renewable Energy Partnership and Supply Chain Resilience: India should co-invest with Australia in refining and processing critical minerals such as lithium, cobalt, and rare earths to reduce dependence on China and enhance supply chain resilience. 
  • Coordinated skill development programs like solar rooftop technician training should be expanded, integrating India’s Skill India and Australia’s Net Zero Jobs Plan to create a skilled workforce. 
  • Policymakers could draw from models like the EU’s harmonised standards in clean energy certification as a reference framework. 
• Deepen Defence and Security Cooperation: India should continue expanding operational and strategic dialogues such as the annual Defence Ministers’ Dialogue, Joint Staff Talks, and bilateral exercises. 
  • Participation in complex military exercises, including India’s involvement in Australia’s Exercise Talisman Sabre and joint Exercise AUSTRAHIND, strengthens interoperability and strategic alignment in the Indo-Pacific. 
  • Promote Defence industrial collaboration as marked by Australia’s first defence trade mission to India in October 2025 and establishment of the India Pavilion at Australia’s Land Forces Expo (2024). 
  • India could further boost cooperation in emerging defence technologies like cyber warfare, space surveillance, and AI-enabled systems. 
• Expand Science, Technology, and Innovation Collaboration: India must increase joint R&D efforts funded through bilateral mechanisms such as the Australia-India Strategic Research Fund and Australia’s Maitri Grants to support innovation in clean energy, bio-manufacturing, and defence tech. 
  • Promoting startups and technology exchanges will accelerate the commercialisation of renewable technologies and smart grid solutions. 
  • For instance, collaboration in space technology and satellite data-sharing between ISRO and Australian space agencies has set a precedent for expanding high-tech cooperation. 
• Boost Educational and People-to-People Connectivity: India should support the establishment of Australian universities’ branch campuses in India and increase bilateral scholarships to maintain its position as Australia’s largest source of international students. 
  • Streamlining visa processes and increasing educational exchange programs will deepen long-term bilateral relations. 
  • Enhanced cultural and public diplomacy initiatives, such as the  India-Australia Friendship Association and the Australian Government’s Centre for Australia-India Relations, can strengthen mutual understanding. 
• Promote Maritime and Indo-Pacific Security Cooperation: India must intensify collaboration within the Quad and bilateral forums to support freedom of navigation, maritime domain awareness, and joint operational planning. 
  • Signing and operationalising maritime security roadmaps bolster a free and rules-based Indo-Pacific, a shared priority. 
  • The signing of the Mutual Submarine Rescue Support in 2025 highlights practical cooperation to address regional maritime safety and disaster response. 

Conclusion:  

As Australian Foreign Minister Penny Wong aptly noted, “the India–Australia partnership is particularly important at a time when the global order is undergoing significant transformation.”Moving forward, both countries should focus on deepening defence cooperation, expanding trade agreements, advancing clean energy collaboration, and harmonising regulations. Sustained and practical engagement will enable both nations to jointly lead in shaping a resilient and prosperous Indo-Pacific future.

Drishti Mains Question:

"Clean energy cooperation is the new frontier of international alliances."Analyse the role of the India-Australia Renewable Energy Partnership in addressing climate change and reducing critical mineral supply dependencies.

Frequently Asked Questions (FAQs) 

1. What is the India-Australia Renewable Energy Partnership (REP)? 
REP, launched in November 2024, is a bilateral initiative to boost renewable energy cooperation, decarbonisation, and energy security under the Comprehensive Strategic Partnership.

2. Which sectors are prioritized under REP? 
Solar PV, green hydrogen, energy storage, critical minerals, circular economy, and skill development for youth and women.

3. What factors are driving the strengthening of India-Australia bilateral partnerships? 
CSP 2020, defence cooperation, ECTA 2022, renewable energy initiatives, education exchanges, and science & technology collaboration.

4. What are the key challenges in India-Australia cooperation? 
China-dependence, limited manufacturing in Australia, regulatory gaps, geopolitical differences, trade imbalance, infrastructure constraints, and skill mismatch.

5. What strategic measures can India adopt to strengthen ties with Australia? 
Deepen defence cooperation, diversify trade via CECA, invest in renewables, expand R&D, boost education and people-to-people links, enhance maritime security, and harmonize regulations. 

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q. In which one of the following groups are all the four countries members of G20? 

(a) Argentina, Mexico, South Africa and Turkey  

(b) Australia, Canada, Malaysia and New Zealand  

(c) Brazil, Iran, Saudi Arabia and Vietnam  

(d) Indonesia, Japan, Singapore and South Korea  

Ans: (a)

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Mains

Q. The new tri-nation partnership AUKUS is aimed at countering China’s ambitions in the Indo-Pacific region. Is it going to supersede the existing partnerships in the region? Discuss the strength and impact of AUKUS in the present scenario.(2021)