Speech by the

(Check Against Delivery)

Introduction

. It gives me great pleasure to address this eminent gathering.

- The Confederation of Indian Industry has a distinguished record in promoting economic activity and fostering business relationships.

. We in Australia are especially appreciative of CII's support for the Australia India New Horizons festival through your co-hosting of the Business Forum.

. The Australia India relationship holds great potential.

- Tapping that potential for the benefit of both countries is the main aim of New Horizons.

. The New Horizons initiative is the largest promotion of its kind ever undertaken by Australia.

. A wide range of senior Australian Government and business representatives are visiting India over the coming weeks underlining the seriousness of Australia's commitment to strengthening ties with India.

- Substantial changes in Australia and India are providing new opportunities for improving the bilateral relationship.

Change and Reform in Australia and India


The Australian Government is taking important steps to further improve
Australia's international competitiveness.

. We are giving a more active role to business. We are undertaking major reform of Australia's labour market and reducing the regulatory burden on business.

. Already, Australia's general tariff rate is only 5 per cent. International trade now accounts for 40 per cent of Australia's GDP.

- Services amount to nearly a quarter of total Australian exports. A significant and growing proportion of Australia's exports are manufactures.

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

. Like never before, we are engaged with Asia.

- 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.

. Australia is a better place for these changes - more competitive, more secure, more prosperous, more confident.

. India, too, is opening up to the world. Its economic transformation since 1991 has been remarkable.

. Economic growth, exports and foreign capital inflows have all risen dramatically.

- It is resuming its place as one of the world's leading agro-industrial nations

. 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.

. Economic reform is, however, an ongoing process.

- It is therefore encouraging to see the new United Front Government's commitment to ambitious development and growth goals.

- I particularly welcome the recent decision to ease regulations covering exploration in the mining sector.

. India's policy of increased engagement with East Asia is another positive development.

- Its influence in East Asia and the broader Asia Pacific region will grow markedly in the years ahead.

. That is why the Australian Government, this year, strongly supported India joining the ASEAN Regional Forum, and welcomes India's attainment of dialogue partnership status with ASEAN.

. The Australian Government also looks forward to cooperating with India in working through the multilateral system achieve real progress in the WTO.

- Australia is committed to pursuing freer international trade and 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.

. Because of the economic changes that have occurred in both Australia and India, there are now great potential to strengthen our partnership, building on long-established and valued ties.

. Commercial ties are leading the way.

- Bilateral trade has nearly doubled in the past few years and is set to double again by the year 2000. Investment has also accelerated and Australia is now one of India's top ten investors.

. India is in the process of becoming one of Australia's most important regional and bilateral partners.

- Australia is committed to realising the full potential of the Australia-India relationship.

. 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.

. Already Australia supplies much of India's coking coal needs for its steel industry.

. Australian wool is found in Indian textiles.

. Australian engineers are helping in highway and port developments.

. Australian universities and colleges are helping to educate and train Indians.

. Australian mining skills and technology are being demonstrated at the Pipawar coal mining project.

. Australia has a large foreign banking presences in India, and our environmental, telecommunications and medical technology is now widely used in India.

. Australia's largest companies are increasingly involved in India.

- ANZ, BHP, CRA, Telstra and News Corporation are all operating successfully in India, while a host of small to medium sized Australian companies are now beginning to make their way in Indian markets.

. We are here for long-term partnership, not short-term gain and the synergies which are being created are becoming very clear.

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

- One example 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.

. The momentum of the Australia-India partnership is growing, but there is still a great deal of unfulfilled potential.

- It is here that Governments have an important role to play.

New Horizons: Changing Perceptions

. To fulfill the potential of the relationship, Australia and India must update and broaden the images that each has of the other.

- The Australian Government wants to update Australia's image in India and expose it to modern India.

. The New Horizons initiative is highlighting Australia's diversity and advanced economy. It aims to make Indians aware that Australia's prosperity rests in large part with the energy and skills of a multicultural society drawn from many countries.

. 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.

- The contribution of Australia's Indian-born community to Australia's economic and social life and their vital role in fostering Australia-India relations has been very significant.

. New Horizons also aims to expose Australians to India's tremendous cultural vitality and its impressive scientific and technological achievements.

- These objectives are being realised through a range of business, science, technology, educational, cultural and sporting events in six major Indian cities - New Delhi, Mumbai, Calcutta, Bangalore, Madras [Chenai] and Chandigarh.

Conclusion

. I believe that New Horizons will be the beginning of a new era in relations between Australia and India.

. New Horizons is not a culmination, but the start of new links and projects between Australia and India.

- 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.

. Your contribution to this endeavour cannot be underestimated, for it is the contacts that you make and the contracts that you sign that will significantly define future relations between Australia and India.

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

. The foundations of our relationship are strong, and the potential for fruitful collaboration is immense. I urge you all to join in this endeavour.