The Hindu Business Line : `Australia offers great scope for India in services'

Developed countries, including Australia, that contend with an aging population offer significant opportunities for India in the services industry, according to the Prime Minister of Australia, Mr John Howard.

Addressing a luncheon meeting organised by the Indo-Australian Chamber of Commerce today, he said that this potential is reflected in the presence of members from the tertiary sector and education in the high-level business delegation with him.

India and Australia are at the `cusp' of big developments in bilateral relationship.

Australia has also recognised the potential in South India and plans to set up a Consulate-General office in Chennai, which would also look after the interests of the trade.

"It is important to understand what Government can do and what Government should not do," he added.

Citing Australia itself as an example, he said: "Governments in Australia have been notoriously bad in running businesses and delinquent in commercial enterprises."

Governments should restrict themselves to putting together an economic framework.

He said that he believed this fundamental principle is shared by India. Governments and businesses should be partners. "Governments do best when they worry about economic framework and leave business to those whose dollars are at stake."

Social economic development is shifting to Asia. The global middle-class will be made up of India, Japan, and China. Earlier, it used to be Europe and North America. "This is neither good nor bad, just a reality." The middle-class is a voracious consumer of goods and services and represents a huge market potential. Therefore, it is important to lift the standard of living of the people, he added.

India and Australia share a common ground on WTO issues even if their emphasis may be different.

Both have "experienced frustration" in WTO on issues relating to high trade barriers in the US and the EU, he said.

In his second visit to India as Prime Minister of Australia, he could sense the excitement at the opportunity that India faced, in its ability to attract investments from around the world and the expansion of its companies into other markets including Australia, he said.

The President of the Indo-Australian Chamber of Commerce, Mr K.M. Mammen, said that India and Australia are establishing a long-term relationship founded on trade and commerce. "Australian technology and Indian human resource can be a formidable combination."

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