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Posted: 2017-04-09 21:48:38

Updated April 10, 2017 09:27:00

What does India want? To be counted.

India is the world's fastest growing major economy. By 2050 it will be the planet's most populous nation.

As it attempts economic transformation, India needs everything from infrastructure to energy and education — the latter two imports which already dominate its trade with Australia.

But more than any material demands, what India wants is recognition — as a country poised to become the world's third largest economy, and a power in its own right.

As Malcolm Turnbull visits India for meetings with Prime Minister Narendra Modi and business leaders, he is talking up the "tremendous opportunity" the nation's growth represents for Australia.

Taken for granted?

When Indian and Australian politicians stand up to give speeches in each others' countries, you bet on hearing "India and Australia have much in common ...".

Perhaps. But "cricket, Commonwealth and curry" as an old adage went, is not how 21st century India sees itself, or its relationship with Australia. (Perhaps with the exception of wanting to remain the number one Test team).

India's Prime Minister Narendra Modi wants to make India a great power, one which commands international respect in its own right, not merely as a balance to regional rival China.

His path to this goal is India's burgeoning youth — he wants to train and skill them to make and do things which are globally valued, and in doing so lure foreign investment in India and transform the nation's economy.

"He [Prime Minister Modi] has changed the way Indians look at themselves," said Dr Anirban Ganguli, director of the Government-aligned think tank, the Dr Syama Prasad Mookerjee Research Foundation.

Emerging from postcolonialism

This might seem simple, but openly courting foreign investment the way Mr Modi has represents a significant shift in postcolonial India.

"Earlier, we were very ambiguous in this — 'should we, shouldn't we?' — and I think this was due to our colonial past," Dr Ganguli said.

"There's this national sense that we don't want to be exploited."

Following centuries of mercantilism under British rule, in 1947 newly-independent India turned away from trade, opting for a planned economy on the socialist principle of self-reliance.

Dr Ganguli says this explains India's notoriously bureaucratic restrictions on commerce and foreign investment, which only began to be dismantled in the 90s.

"So I think there was a lot of ambiguity, and it didn't allow us to clearly state, 'What is it that we want?' as you've asked me," he said.

For the Government to foster risk-taking entrepreneurship, provide incentives for start-ups and actively encourage foreign companies to set up shop in India is significant, he said.

Where does Australia fit?

Mr Modi's answer to the exploitation fear is to encourage skilled manufacturing and services — to move India's goods and services exports higher up the value chain from garments or call centres.

"[Prime Minister Modi] has used this term, 'human resource superpower,' in terms of economy and manufacturing," Dr Ganguli said.

"It is this young India, this new India which needs training, which needs opportunity.

"[There is] this huge emphasis on skilling the population — where Australia plays, or expected to play a great role."

Foreign students are a $20 billion business for Australia. Last year 61,000 Indian students headed Down Under, making Australia the second-most popular destination for Indians behind America.

Critical for Prime Minister Malcolm Turnbull and Education Minister Simon Birmingham is enabling Australia's institutions to reach further into India, where they can teach those who lack the means to study abroad.

Mr Birmingham said Australia's focus is now shifting to "how it is we can help Prime Minister Modi and the Indian government to skill some 400 million people by 2020".

Foreign educators are still not allowed to set up campuses under their own name in India, but partnerships and collaboration agreements are proliferating.

Mr Birmingham said Australia will make the case for easing restrictions.

"Enhanced mutual recognition of Australian qualifications as well as better access for Australian education and training providers into India, to help them meet their targets to build their capacity and their economy," he said.

And what about turning the lights on?

Mr Turnbull will meet Adani chairman Gautam Adani while in India.

Mr Adani's board is due to decide this month whether to proceed with the controversial $21 billion Carmichael coal mine in Queensland's Galilee basin.

The project has state and federal Government support in Australia and the company says it will help provide cheap power for Indians still living without electricity.

But environmental protesters have threatened to disrupt construction and the plan to import coal runs contrary to India's Office of Fair Trading stated goal of coal self-sufficiency.

Asked on Sunday if he will be promoting the project, Mr Turnbull replied "we'll certainly be talking about the importance of energy exports to India".

"As you know India has a massive program of expanding electrification across the country and Australian coal has a very big role to play in that," he said.

The nuclear option

It is two years since India and Australia signed a supply treaty. This visit is expected to herald the first Australian uranium shipments to India under that deal.

When Resources Minister Matthew Canavan visited India last month, he told the ABC that he was "very confident" uranium sales were finally set to begin.

"I know of some very well-developed and keen interest," Mr Canavan said.

India's external affairs ministry too says it expects shipments to begin this year.

A free trade agreement, which former prime minister Tony Abbott hoped to have in force already, remains a long way off. Agriculture the main sticking point.

Security and defence ties

Mr Modi is also increasingly willing to be a "strategic partner" to countries like Australia, Japan and the United States.

Dr David Brewster, from the Australian National University's National Security college has previously argued that India's willingness to engage indicates an increasingly outward-looking country which can help balance China's rising military might.

"Both Canberra and Washington are both very keen to build their engagement with India, because India is seen as a major power and an emerging power in Asia.

"And what's more a democracy and I think that's very important," he said.

Last year, a small contingent of Australian special forces travelled to India for their first ever exercise with Indian commandos.

It is expected Mr Turnbull and Mr Modi will agree to expand military cooperation, currently focused on Indian ocean naval exercises.

Understanding aspiration

India's challenges are enormous. Even if the mission to skill its emerging labour force is successful, those workers will have to contend with increasing automation threatening the jobs they have been trained for.

India is not China. Its Office of Fair Trading proclaimed status as the "world's largest democracy" also means it takes the Government far longer to implement the changes it desires, and often they come with compromise.

But change, usually described in India simply as "development" is what the nation's vast aspirational population want — a chance to create something better than what they have grown up with.

This is becoming the way India's politicians appeal to voters, and understanding that aspirational shift in the Indian psyche will be critical for countries like Australia.

Topics: world-politics, international-aid-and-trade, business-economics-and-finance, government-and-politics, education, globalisation---economy, india, australia

First posted April 10, 2017 07:48:38

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