Speech by the

(Check Against Delivery)

Introduction

Welcome ladies and gentlemen. I am honoured to have the opportunity to address this distinguished gathering.

The New Horizons promotion addresses my government's concern that the people of India have not been made sufficiently aware of Australia as a modern, dynamic and technologically advanced nation.

The centrepiece of New Horizons is this Business Forum. This event has the potential to be a landmark in our relationship because the outcomes of our discussions here and the personal and business relationships we form will help shape our relations in the next few years.

The Business Forum boasts representatives of over 150 Australian companies, including some of our most senior Chief Executive Officers. This Australian representation is well matched with our distinguished Indian counterparts.

This Forum is co-hosted and supported by the peak business associations of India, the Confederation of Indian Industries (CII) and the Federation of Indian Chambers of Commerce (FICCI). I thank both these organisations for their support.

I would also like to give special thanks to the co-presenters and sponsors of New Horizons. The significant corporate support New Horizons has received shows that we are on the right track.

The New Horizons initiative is the largest promotion of its kind ever undertaken by Australia underlining the seriousness of the Australian Government's commitment to strengthening relations with India.

This commitment recognises that substantial changes in Australia and India have brought unprecedented opportunities for improving the bilateral relationship, and we want to broadcast these opportunities through New Horizons.

Change and Reform in Australia and India

Let me first outline the important economic changes underway in Australia and India that are making for a closer commercial relationship.

Australia

In Australia, commitment to economic reform is now stronger than ever. The Australian Government is improving Australia's international competitiveness and further integrating the Australian economy with regional and global economies.

It is also giving a more active role to business.

Currently, we tackling the difficult task of labourmarket reform, which will improve the competitiveness of Australian business significantly. We are also reducing significantly the regulatory burden that Government has in the past placed upon business.

These reforms will further strengthen the Australian economy, which is already performing strongly.

GDP growth this financial year is forecast at 3.5 per cent, amongst the top half-dozen OECD countries. Inflation stands at a low 2 per cent.

The general tariff rate has come down to 5 per cent, opening up Australian companies to the rigours of international competition.

Our businesses now look to export and invest overseas. International trade now accounts for 40 per cent of Australia's GDP. Manufactures now make up nearly 35 per cent of merchandise exports, and services amount to nearly a quarter of all exports.

Gone are the days when `farming' and `quarrying' stereotyped our economy.

And like never before we are engaged with Asia. It is the vital sphere of our economic and strategic interests.

Nearly two-thirds of Australia's exports and over half of our total foreign direct investment now goes to countries in the Asia Pacific region.

These economic changes and developments have made Australia a better place - more competitive, more secure, more prosperous and more confident.

India

India, too, has been undergoing a major economic reform process. Its economic transformation since 1991 has been nothing short of remarkable.

Economic growth, exports and foreign capital inflows have all risen dramatically, without significant inflationary pressures. India has set a course which should see it resume its place as one of the world's leading agro-industrial nations.

India is fast emerging as a major trading nation, achieving trade growth of nearly 14 per cent each year since 1991.

As with Australia, East Asia is figuring more prominently. India's exports to the ASEAN countries are far outpacing the growth of its exports to any other region.

India has recognised that economic dynamism can only be achieved by releasing the energies of the private sector, and by joining fully with the world economy.

The new United Front Government's commitment to further economic reform and its ambitious development and growth goals are therefore very encouraging.

I particularly welcome the Government's recent decision to ease regulations covering exploration in the mining sector. This is an important step.

The Indian Government's policy of increased engagement with East Asia is another very positive development.

Recognising India's increasing importance in the region, the Australian Government, this year, strongly supported India joining the ASEAN Regional Forum, and welcomes India's attainment of dialogue partnership status with ASEAN.

Developments in the Indian Ocean are also gaining momentum. It is a region of great potential and Australia is keen to work with India to advance Indian Ocean Regional Cooperation.

The Australian Government also looks forward to cooperating with India in working through the multilateral system to achieve real progress in the WTO. The current high growth in world trade and the prosperity accompanying it would have been impossible without the security provided by multilateral trade disciplines.

Australia is therefore committed to pursuing freer international trade, using the open regionalism approach that is being developed through APEC as a stepping stone to the achieving the potential of the World Trade Organisation. It is encouraging that India is of a like mind on this issue.

Australia and India: The Bilateral Relationship.

The economic changes that have occurred in both Australia and India in recent years are presenting many new opportunities. There is now great potential for Australia and India to strengthen their partnership, building upon long-established and valued ties.

Strengthened commercial ties will be very important. Already we are heading in the right direction. Bilateral trade has nearly doubled in the past few years and is set to double again by the year 2000.

Similarly, investment has accelerated. Australia is now one of the top ten investors in India. This situation will further improve with the finalisation (which I believe is not far away) of an Investment Promotion and Protection Agreement between our two countries.

The record of rising activity augurs well. But there is a much more to be done.

To sustain its rapid economic development, India requires world class technologies in areas like telecommunications, electric power generation, infrastructure and resource development, and environmental management.

India will also need to strengthen its capacities in services like insurance, banking, education and the full range of professional services.

Australia is a leading edge competitor in all of these areas, and has much to contribute to India's economic development.

Let me give you a sense of the diversity of Australian companies now participating in India's economic development:

The ANZ Banking Group, for example, now has one of the largest foreign banking presences in India.

Qantas is flying Indians around the world, and I am pleased to say that it will be doing so more frequently as Australia and India have just revised our Air Services Agreement to reflect the growing traffic between us.

RTZ-CRA, BHP and White Industries are bringing world class mining skills and technology to India.

Telstra and Data Craft are active in the telecommunications industry.

Command Petroleum is busy with offshore oil and gas development.

Snowy Mountains Engineering and Pacific Power are involved in infrastructure development.

Clayton Utz, Coopers and Lybrand and Price Waterhouse are providing legal and accounting services and Australian educational services are making headway in India.

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In areas of priority for India's development Australian companies have great strengths. They are serious about India and they are here because they are the best at what they do.

On the other side of the equation, I am very pleased indeed that Indian companies are finding new opportunities to invest and trade in Australia.

One example, in particular, highlights the direction and potential of Indian commercial activity in Australia: Indian-made motor vehicles, like the Suzuki Alto and the Maruti Jeep, are making a real impression in Australian markets.

As you can see, there is a growing momentum in our bilateral relations that hold great promise. Your large presence here today further underlines this point.

But there is still a great deal of unfulfilled potential in the Australia-India relationship. In fulfilling that potential, Government has an important role to play.

New Horizons: Changing Perceptions

Despite the developments in bilateral relations in recent years, many in Australia and India retain outdated and often one-dimensional views of one another.

Too few in Australia are aware of India's capabilities and qualities.

Too few in India know that Australia has a sophisticated economy with a vibrant multicultural society.

Just as a transformed India deserves to be looked at in a new light by Australian business, so too, Australia needs to demonstrate more clearly its expertise across a broad range of products and services.

This is the central purpose of the New Horizons initiative. We want to update Australia's image in India and to expose Australia to modern India.

Look at the New Horizons program and you see a snapshot of contemporary Australia:

For example, the Agrotech agribusiness fair, and our Mining and Coal Missions are showcasing Australia's world leading skills in agriculture and resource development.

Australia's international best practise in areas of environment management, health technology, infrastructure development and communications is being exhibited.

Our expertise in legal, educational, financial and tourism services is represented.

Australia's strong base in science and technology is on show at the Science and Technology Colloquium.

Also New Horizons showcases Australia on the cultural and sporting front.

Finally, a large number of Australia's most successful business people have come to India during New Horizons to investigate India's commercial potential.

New Horizons is introducing India to a "new" Australia, bringing home to Indians the reality of Australia's economic capacities as a partner for India into the 21st century.

It also highlights the richness of Australia as a diverse and tolerant society. Around 40 per cent of Australia's new migrants come from Asia. Among those migrants has been a strong contingent of people born in India, who have made a significant contribution to Australia's economic and social life and played a vital role in fostering Australia-India relations.

Conclusion

I believe that New Horizons will be the beginning of a new era in relations between Australia and India. The Australian Government will continue to give emphasis to developing the Australia-India partnership.

In the same way, we will be giving more emphasis to the region as a whole through our Year of South Asia initiative - which will see business missions and cultural events go to other countries of the region next year.

The Coalition government wants Australia to become a permanent part of the landscape in South Asia. New Horizons is not a culmination, but the start of new links and projects between Australia and India.

In another positive step to advance of this friendship, I am pleased to announce today that the Australian Government's Australia India Council together with the Australia-India Business Council will from next year fund a work exchange program for young Indian and Australian business executives to acquire work experience and training in each other's countries.

We hope that this important initiative will make a lasting contribution to the development of mutual contact and understanding between the business sectors of both countries.

But at the end of the day, governments can only do so much. Ultimately, it is people like you who really hold in your hands the future of Australia-India relations.

I believe Australia has much to offer India and we are ready to work in partnership with India in its enormous and vital development task.

You will play an integral part in expanding the the Australia-India partnership. This Business Forum provides excellent opportunities to rise to the challenge facing both countries. I wish you all the best in making the right contacts, and translating those contacts into contracts.