Re: Federal Trade Minister says he'll now work on a FTA deal with Indi
Narendra Modi, Indian prime minister, tells Federal Parliament he sees Australia as major economic partner
Indian prime minister Narendra Modi has delivered a historic address to Federal Parliament in Canberra, saying he sees Australia as a major economic partner.
Mr Modi, the first Indian leader to visit Australia in 28 years, used his speech to highlight the two countries' shared military history, democratic systems and sporting rivalry.
He said there were huge opportunities for Australia to provide education, health care and clean energy to India in coming years.
"Australia has become more engaged in this part of the world," he said.
"We welcome it, the growing role of driving this region's prosperity and its security, because we in India seek the same future for this world.
"We understand how deeply our future is linked to this region.
"India and Australia can play cricket hard with each other and I suspect we will next month.
"We see Australia as one of our foremost partners in the region.
"We also see Australia as a vital partner in India's quest for progress and prosperity."
Mr Modi also addressed the growing issue of terrorism.
"Terrorism is changing in character and expanding in its reach," he said.
"We have to deepen our bilateral security cooperation but we need comprehensive global strategy for a global problem.
"All nations, small and big, abide by international law and norms.
"Even when they have bitter disputes, we should collaborate... maintaining maritime security. We should work together on the seas and collaborate in international forums."
Mr Modi also injected some humour into his speech by using the term "shirtfront".
"(As) the third head of the government you are listening to this week, I do not know how you are doing this," Mr Modi told members of Parliament, who were addressed by Chinese leader Xi Jinping on Monday and Britain's David Cameron last Friday.
"Maybe this is Prime Minister Abbott's way of shirtfronting you!"
Mr Abbott made the term "shirtfront" a global concept when he threatened to do it to Russian leader Vladimir Putin at the G20 over the crisis in Ukraine.
Abbott flags prospect of trade pact with India next year
Mr Modi's address came just two months after Prime Minister Tony Abbott toured India, during which the two countries sealed a long-awaited nuclear energy deal.
Australia yesterday sealed a landmark trade deal with China that will abolish tariffs in the lucrative resources and agricultural sectors as Canberra confronts a painful downturn in mining.
Mr Abbott already has his eye on a similar outcome with India, flagging the prospect of a pact by the end of next year.
"By the end of next year we will have a free trade deal with what is potentially the world's largest market," he said, adding that both leaders "will make it happen".
Mr Abbott added that the bilateral relationships needed to "move beyond cricket".
Opposition Leader Bill Shorten said Australia's task was to build on its economic relationship with India.
"The great significance of your visit, indeed your leadership, is the paradigm shift in Indian politics from the politics of welfare to the politics of aspiration," he told Parliament.
Mr Modi earlier signed agreements with Australia on security cooperation, narcotics control, social security, and tourism.
"This is a natural partnership emerging from our shared values and interests and strategic maritime locations," he said.
"Security and defence are important and growing areas of the new India-Australia partnership for advancing regional peace and stability and combating terrorism and transnational crimes."
Energy to be 'a big part of the Australia-India story'
Dr Pradeep Taneja, from the University of Melbourne's Australia-India Institute, predicts some obstacles in achieving a free trade deal with India.
"Clearly for India, agriculture's going to be a very sensitive issue," he said.
"As for the exports of energy concern, I think that'll be a relatively easier part, because India needs energy, whether it's coking coal or thermo coal or natural gas. I don't think there's going to be too many problems in that area.
"The services sector is also going to be difficult. India is a country where the service sector is the dominant part of India's economy, and that's where I think there'll be very tough negotiations."
However, Dr Taneja said India would be a good energy market for Australia.
"I think energy is going to be a big part of the Australia-India story," he said.
"India is going to develop fairly rapidly if prime minister Modi's plans come to fruition and that would require a lot of imports of energy.
"And, apart from coal, I think India could become a major importer of natural gas from Australia.
"Plus, Mr Modi also wants to develop India's renewable energy potential."
Narendra Modi, Indian prime minister, tells Federal Parliament he sees Australia as major economic partner - ABC News (Australian Broadcasting Corporation)
