The Hindu Business Line : Australia keen on improving business ties

THE Australia-India Business Council sees a clear opportunity for Canberra and New Delhi to come together in the Information, Communication and Technology (ICT) sector and bid for projects in third countries.

"Clearly, there is a big opportunity for India in Australia and vice-versa. India can offer software strength and Australia application and domain knowledge," said Mr Neville Roach, Chairman of the council.

India could also look at development of software programmes in Australia either through competition or collaboration. "Australia is less costly compared to Europe and the US," he said, adding that thus, collaboration in ICT sector could enjoy an advantage.

"Australia and India are natural partners. Both are medium size powers that can come together for effective partnership," Mr Roach told Business Line.

The other area that could witness better collaboration between both the nations is the food sector.

"Australia is a larger producer of processed food and high quality wines. India faces problems in wine processing and packaging. People come from France to develop the Indian wine sector but Australia can be a better source for technology transfer in the sector," he said.

Australia could also provide expertise in the field of infrastructure, especially ports, besides sharing its expertise in road construction, air services, transportation, power generation and engineering.

"We see significant opportunities in divestment of Indian public sector firms, environment management and privatisation. The next step can perhaps be for Australian companies to invest in Indian infrastructure projects," Mr Roach said.

Stating that there was scope for Australia to enter the financial services sector, he said it was trying to sell plastic currency notes to RBI.

Plastic currency notes have a longer shelf life and would be ideal for Indian conditions, according to him.

Mr Roach said education was another sector witnessing good interaction between both the nations. "Australia and the UK are competing for the No. 2 position as destination for Indian students. We need a flexible model for the future," he said.

Setting up educational infrastructure in India could be an option that Australia could explore besides coming up with a model that would offer onshore and off-shore courses.

"We could deliver a course in India to the students and mix it with on-line training. Or the students can do part of their course in India and the remaining part in Australia," he said.

The rate of growth of Indian students coming to Australia for higher studies is 40-50 per cent per annum, according to him. On the issues that were affecting relations between both nations, Mr Roach said one was the high import tariff of 250 per cent for wines in India.

"On the Australian side, the issues are visa delivery for students and quarantine for food products from India," he said.

Bilateral trade between India and Australia have increased to A$4.3 billion (around Rs 15,265 crore) during 2002-03 (July-June) from A$3billion (aroud Rs 10,650 crore). Of this, Australian exports made A$3 billion and Indian shipments the rest (Rs 4,615 crore).