Last year India celebrated 75 years of independence and overtook the UK to become the 5th largest economy in the world. Today, growing at 6.5- 7% India is the fastest growing major economy in the world with a focussed economic reform & development agenda set by the Government of India for it to become the third largest economy by 2030, and a fully developed country by 2047 when it celebrates India@100.

The bilateral relationship between Australia and India has continued to strengthen since its elevation to a Comprehensive Strategic Partnership in 2020. This has led to the historic trade agreement at the beginning of this year and reciprocal successful Prime Ministerial visits.

At KPMG we are seeing the emergence of new markets, channels and capabilities for our clients that are increasingly becoming both curious and more attuned to the opportunities presented by the Australia-India Economic Cooperation and Trade Agreement (ECTA). Relationships will be further strengthened through continued negotiations over a further Comprehensive Economic Co-operations Agreement (CECA).

The CECA fourth round of bilateral trade discussions took place in July this year, with 15 new areas identified for negotiations, including collaboration in space, mining, and sports. CECA sets an ambition for 96% of Indian imports to Australia, and 90% of Australian exports to India to be tariff free by 2026.

India is Australia’s sixth largest trading partner with two-way trade in goods and services valued at $46.5 billion in 2022 and expected to grow to $100bn by 2030.

For Queensland businesses, this opens enormous new market potential across multiple sectors including education, tourism, construction and engineering, business and financial services, and research and development.

KPMG are extremely active through our dedicated India business practice both inbound India business with entry into Australia, and outbound India business as we assist local companies to take advantage of the growth potential of the Australia India trade & investment corridor.

From KPMG’s perspective, the opportunity for Australian businesses in India represents a generational shift in market opportunity, expansion, and wealth creation.

To realise the full potential of this opportunity there are two immediate areas requiring focus to ensure success in addressing this market:

1. India business literacy.
2. Access to sustainable finance.

India business literacy is paramount to understanding the complexities of the business landscape in India (both at a Federal and State level), and the diversity and technicalities of both the regulated environment as well as the need to scale business and operating models to adequately address and service these markets.

Queensland is a state rich in natural resources and ESG linked business. 

For these businesses to enter and scale in India, there is an increasing need for reliable access to sustainable finance products, designed to accommodate the complexities of the India market, and support businesses to accelerate market entry and expansion into the Australia-India trade corridor.

Timing will be a key factor of how much value will be realised in what is a significant and immediate opportunity to shape future revenues and, in some cases, outsized growth and wealth.