For decades Australia has talked about the growing importance of India – while in reality putting all its energy into relations with China and the USA.
2026 could be the year of the big shift to India.
As my good friend Mugunthan Siva, CEO of India Avenue Investment Management, points out – “For Australia, the implications are clear. India is not simply a fast‑growing market; it is a strategic partner.”
A new strategic relationship is emerging — one built on complementary strengths, shared economic interests, and long‑term structural alignment. India is becoming increasingly significant for Australia, and the shift is now being reinforced at the policy level.
What is the evidence?
As of January 2026, Australia will scrap tariffs on all Indian exports – this is the outcome of the India-Australia Economic and Trade Agreement (ECTA). Siva believes this is not just a symbolic gesture – “It is a structural reset”.
In the past both countries have really seen each other as short term “transactional” targets. Now we shift in 2026 to long term economic partners.
Mugunthan Siva says: “For Australia, it opens the door to deeper integration with the world’s fastest‑growing major economy. For India, it strengthens access to a stable, high‑income market with strong demand for services, resources, and education.”
Why is this so strategic?
We love the growth story of India, but in 2026 our relations could become a “strategic story”, powered by four engines from the India side – demographics, digitisation, financialisation and formalisation.
Maybe this time it really is “happy new year” for India and Australia.
READ MORE HERE:
https://www.livewiremarkets.com/wires/australia-s-strategic-india-shift
Into India 