India and Australia Strengthen Ties with Critical Minerals Pact

India and Australia are set to enhance their economic partnership by focusing on critical minerals, marking a new chapter under the India-Australia Economic Cooperation and Trade Agreement. As trade expands beyond traditional goods, this collaboration aligns with strategic clean energy and semiconductor goals.

India and Australia are deepening their economic partnership, broadening the focus beyond traditional trade to encompass critical minerals as a key facet of their cooperation. This strategy is part of the India-Australia Economic Cooperation and Trade Agreement (ECTA), according to a report by Rubix Data Sciences released ahead of Prime Minister Narendra Modi's visit to Australia this week.

Rubix Data Sciences highlighted that as the two countries bolster trade, investment, and supply chains in clean energy, the ECTA, active since 2022, has notably improved market access. All Indian exports are slated to have duty-free entry into the Australian market by January 2026. Concurrently, India's trade deficit with Australia has shrunk to USD 6.5 billion in FY2026, owing to reduced Australian imports and increasing Indian exports.

The report underscores Australia's pivotal role with its reserves of 21 out of the 49 minerals India deems critical, crucial for India's clean energy objectives and semiconductor production. Both nations are anticipated to benefit from strengthened supply chains as they aim for robust cooperation in critical sectors such as semiconductor manufacturing and renewable energy.

While energy trade, including coal and refined petroleum products, remains central, India and Australia are poised to extend their collaboration into areas including defense, advanced manufacturing, and critical technologies. This expanding relationship promises new commercial opportunities, supported by Australia's growing investments in minerals, hydrogen, and clean energy.