The Hindu : National : Howard visit will boost trade, says Assocham

Online edition of India's National Newspaper
Monday, Mar 06, 2006

National

National

Howard visit will boost trade, says Assocham

Special Correspondent

New Delhi: The visit of Australian Prime Minister John Howard is expected to give a surge to bilateral trade. Industry body Assocham expects trade to increase from $7.5 billion to $16 billion by 2010.

According to the chamber's projections, the trade surplus will still remain in Australia's favour even in 2010. While India's imports are worth $6 billion, its exports account for only $1.5 billion. The major items that India imports from Australia are gold, coal, diamonds, copper ores and wool. The main exports to Australia are gems and jewellery, metal machinery and instruments, cotton yarn, fabrics and readymade garments. As per Assocham findings, Australia's supply of gold, currently valued at over $2.5 billion, constitutes 25 per cent of India's gold requirement.

Australian coal worth $1.2 billion is used for production of over 50 per cent of steel. Domestic power companies are keen to import coal from Australia as it does not contain ash.

With the Indian software industry estimated to be worth $80 billion by 2008, cooperation in information technology is also expected to boost bilateral trade. Areas where the two economies will grow on a mutually beneficial basis include financial services, education services, retail, processed food and wine, consumer products, interior design and lifestyle goods.

Speculation about a surge in trade are based on the tripling of trade volume in the last three years from a level of less than $3 billion."As the warmth in economic relations between Australia and India is steadily on the rise, two-way trade is bound to exceed $16 billion by 2010," Assocham President Anil K Agarwal said in a statement issued here on Sunday.

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