India is on the cusp of becoming the world's most populous country, and it could spell new opportunities for trade and exports from Australia.
Australia's current relationship with India is changing and it is a shift that has been accelerated by a recent free-trade agreement signing — the first India has signed with a western nation.
The agreement came into force in December 2022 and has seen more than 85 per cent of Australian goods exported to India now tariff-free. Similarly, 96 per cent of imports from India are now tariff-free.
It signals change for the largest democracy in the world, which Abhinav Bhatia, the senior trade and investment commissioner based in India with Trade and Investment Queensland, said had undergone a decade of structural reforms from tax to roads, airlines, internet, all culminating in India now the fifth largest economy in the world.
"Australia has positioned itself very well much ahead of other countries by signing this free-trade agreement so that Australian businesses can take advantage of this rising middle class, better disposable income, and that is a massive opportunity that we shouldn't miss," Mr Bhatia said.
1.4 billion new consumers
The United Nations has projected that India will surpass China as the world's most populous country this year with more than 1.4 billion people.
It is a staggering number that, following the signing of the free-trade agreement, now allowed industries such as agriculture to access 1.4 billion more consumers not previously obtainable.
"The opportunity there is massive and as per capita GDP grows, the need for higher quality products, higher quality produce, from agri to cosmetics to tech, everything is going to be needed in India," Mr Bhatia said.
"I don't know if it is going to play the role of replacing China or not.
"But what I do know is that India and Australia have seen this long-term friendship on the cricket field and we're going to see that friendship developing in commerce as well."
What does India want from Australian agriculture?
The rising middle class in India has triggered a change in what Indian consumers eat.
"As the population becomes more affluent, their diet is changing as well," Nik Senapati, president of the Queensland Australia India Business Council, said.
"In India, most vegetable products are bought fresh and cooked that day, so there's a need to understand how you can get that into the market.
"Supermarkets are just starting to really come into existence."
But like other trade partners, India too is seeking specific export products from Australia with cultural factors influencing the purchase choices.
Due to India being a majority Hindu nation, there are cultural sensitivities around the consumption of beef.
But Mr Senapati said the nation still needed red meat like lamb among other products.
"Definitely pulses, they will need grain and, if the tariffs come off, chickpeas as well," he said.
"I think the quality component of Australian vegetables and fruits are at an extremely high level and I think there's a market there for that as well."
