Sunday, 12 March 2023

India and Australia Look to Strengthen Economic Ties Through Closer Cooperation on Critical Mineral Trade


India and Australia have set their sights on boosting critical mineral trade as part of a broader deal aimed at strengthening economic ties between the two countries. The move comes as both nations look to diversify their supply chains and reduce their dependence on China.

India is a major consumer of critical minerals, which are essential for the production of high-tech products such as electric vehicles, batteries, and renewable energy technologies. Australia, on the other hand, is a leading supplier of these minerals, with significant deposits of lithium, rare earths, and other minerals critical to the tech industry.

The proposed deal, which is still in its early stages, would involve closer cooperation between India and Australia in the production and supply of critical minerals. This would include the establishment of supply chains and infrastructure to support the development of the sector.

The deal would also seek to promote investment in the sector, with the aim of creating jobs and supporting economic growth in both countries. This would involve facilitating partnerships between Indian and Australian companies, as well as providing access to funding and other forms of support.

The proposed deal is part of a broader effort by India and Australia to strengthen economic ties and reduce their dependence on China. Both countries have been impacted by China's aggressive trade policies, which have led to disruptions in supply chains and increased costs for businesses.

India and Australia have sought to counter this by deepening their economic ties, with a particular focus on critical minerals and other strategic sectors. This includes the recently signed Comprehensive Strategic Partnership (CSP), which seeks to enhance cooperation in areas such as trade, defence, and cybersecurity.

The proposed deal on critical minerals is seen as a key component of this broader effort, with both countries recognising the importance of securing reliable and diverse sources of supply for these essential materials.

In conclusion, the proposed deal between India and Australia to boost critical mineral trade is a significant step towards strengthening economic ties between the two countries. It highlights the growing importance of these minerals in the high-tech sector, as well as the need for reliable and diverse sources of supply. The deal is expected to create opportunities for investment and job creation, as well as support economic growth in both nations.