Colonial cousins

Despite much in common a shared colonial heritage,democratic values,the English language,common law tradition,rapidly rising Indian migration to Australia,and cricket Delhi and Canberra have remained distant cousins. The just concluded visit of Australias prime minister,Julia Gillard,promises a different future for India and Australia. If Gillard has demonstrated great personal warmth and a strong political commitment to transform the bilateral relationship with India,it is up to Delhi to follow through. Until now,the enthusiasm has all been from Canberras side. Gillards trip to Delhi is the fourth by an Australian prime minister in about 12 years. But no Indian prime minister since Rajiv Gandhi has found time to travel to Australia. India,however,has begun to recognise that its stakes in Australia are rapidly rising. The agreement between Prime Minister Manmohan Singh and Gillard to have annual bilateral summits is part of that important recognition.

Beyond this process,India needs the vast wealth of Australias natural resources to sustain its growth. The inbuilt economic complementarity between the two has begun to express itself in Indias growing trade with and foreign direct investment in Australia. Trade has doubled in the last six years; Singh and Gillard have now set an ambitious goal of doubling it again to 40 billion by 2015. With Australia emerging as one of Indias main sources of natural resource imports,especially coal,Indian FDI there has already touched 11 billion. Singh and Gillard have reaffirmed their commitment to look beyond the trade in natural resources and complete the negotiation of a high-quality comprehensive economic partnership agreement.

On the political front,Gillards bold initiative to overcome the entrenched opposition in her party to export uranium to India has helped resolve one of the long-standing contentions in the bilateral relationship. Delhi and Canberra will now begin talks on finalising the legal arrangements to facilitate uranium trade. Gillard has also agreed to support Indias quest for membership in various export control clubs such as the Nuclear Suppliers Group. Singh and Gillard have also outlined the paths to greater cooperation in their shared geopolitical environment. Whether it is counter-terrorism or constructing a stable balance of power in Asia,Delhi and Canberra find themselves on common ground. Arguing that the Indian and Pacific oceans must be seen as a single region the Indo-Pacific Singh and Gillard have agreed to work together in promoting regional cooperation and deepening their bilateral strategic partnership. As the colonial cousins draw close,the partnership with Australia emerges as one of Indias most productive external engagement.