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India and Australia have assumed a greater role in international affairs, emerging as regional powers with great power potential. Changes in the international environment, particularly the rise of China as a common source of concern and growing economic relations between the two countries in an era of increasingly complex interdependence, have provided an impulse for the two countries to enhance their bilateral ties. Part of that includes developing a robust maritime capability that can project force across blue water as well as on land, and which works in concert with allied maritime forces in assuring the defence of common interests. The paper provides an overview of the Indian–Australian relationship, focusing the analysis on India's changing maritime outlook, Australia's strategic priorities and a forecast of the possibilities for their developing a strategic partnership in the Indo-Pacific region. [ABSTRACT FROM PUBLISHER]

Australia and India have had few reasons in the past to develop systematic and significant levels of economic engagement. This was due to very different positions they have held in the world-system since the Second World War. De-colonization, the fall of the British Empire, the weak status of the British Commonwealth, and the realpolitik of the Cold War saw India and Australia located on different parts of the geo-political and economic world map with small demographic and cultural flows, and insignificant economic trade. Both countries developed similar economic policy regimes that were essentially state-led nationalist projects of economic development with concomitant policies of import-substitution, local industry-subsidization, highly-regulated financial systems, and high tariffs. The last quarter of the 20th century saw a radical revision of both nations’ economic strategies, with Australia moving first to drop many of its trade barriers in the 1970s and ’80s. It is now one of the most open economies in the world. India’s liberalization programme commenced much later in 1991 but nonetheless has had a dramatic impact on its economic fortunes and growing status in the world economy. With these changes there are increasing opportunities for bilateral trade and a greater economic enmeshment in regional engagements and alignments in the Indian Ocean and in wider Asian fora. One significant indicator of change in growing Australia-India economic engagement is to look at Foreign Direct Investment (hereafter FDI). Currently, the movement of FDI between these two countries is still not very large but has a strong potential to grow over the short to medium term. This paper looks at the future prospect of this growth and asserts that, by engaging in areas of comparative advantage, it will benefit both national economies. Moreover, economic flows are also indicators of great social and cultural traffic. The movement of FDI between the two countries will not only encourage greater flow of peoples, especially outward migration from India to Australia, but also trigger more Australian expatriates living in India (from a very low base). Greater economic trade promises more cultural exchange. [ABSTRACT FROM PUBLISHER]

Australia's relationship with India stands in apparent contrast with its relations elsewhere in Asia. Most accounts of Australia's links to India liken them to recurrent bouts of amnesia, arguing that Australia has not put the same efforts into engaging with India that it has into fostering ties with Japan, China and Indonesia and that, like a patient with injury to the hippocampus who has lost the ability to lay down long-term memories, Australia appears to approach each episodic moment of contact without recollection of the past. Australia's relationship with India has passed through distinct phases, from a brief moment of warmth in the years immediately after India achieved independence, through frosty decades of the Cold War. In contrast to many other accounts, the paper argues that since the 1980s Australia has sought with considerable consistency to engage with India and that the tenuousness of the relationship is primarily due to Indian indifference. Recent bilateral issues, including the supply of uranium to India and attacks on Indian students, have led to an enlargement of contacts which may signify that the engagement is at last becoming a mutual one. [ABSTRACT FROM AUTHOR]