With 47 per cent of Australians favouring Free Trade Agreement with India in a recent poll, the feasibility study by the two sides has revealed the agreement could boost Australia's GDP by AUD 45 billion in the next 20 years.
According to 'The Age', the Trade minister Simon Crean, who is currently on a visit to India, has indicated that the negotiations for a deal would start soon while expecting Uranium exports to India, to be an issue that would form a
part of discussions.
However, Crean said there was no change in the government's position and Uranium would not stand in the way of a trade deal.
"Uranium is not the stumbling block in terms of an FTA," he said.
"Having an energy chapter in the FTA might facilitate something of a dialogue in that direction. It's another way for them to address the question if they want to do it," Crean
added.
The two-year feasibility study said a trade agreement between the two countries would lead to a substantial increase in the trade of goods and create potential for more trade in services and investment.
"The joint study finds that an Australia-India FTA is feasible. It makes a strong economic case that both Australia and India would gain significant economic benefits from a comprehensive FTA. An FTA would open up trade, investment and job opportunities in both countries," Crean said in a statement.
"An FTA with India will continue the momentum of Australia's economic integration with Asia - the fastest growing region in the world," he added.
Independent modelling conducted for the study by the Centre for International Economics indicates that an Australia-India FTA could result in a net increase in Australia's GDP by up to USD 32 billion (AUD 45.5 billion) and India's GDP by up to USD 34 billion (AUD 48.3 billion) over a period of 20 years.
"India is the world's largest democracy and is a market of 1.2 billion people. Its youthful population, diversified economy and growth trajectory present significant opportunity for Australian business, especially in the agriculture, energy, manufacturing, mining and services sectors," Crean said.
"Australia's exports to India have increased by an annual average of over 25 per cent over the past five years, making India our fastest-growing major export market. It is our
fourth-biggest export market, up from 13th a decade ago."
Industry consultations in Australia and India revealed broad support for an FTA with India.
Australia engaged stakeholders through requests for public submissions and nationwide consultations.
The Government's top trade priority remains concluding a comprehensive, balanced outcome in the Doha Round of WTO negotiations.
But an FTA with India can complement the multilateral trading system.
Meanwhile, a media report said that opinion polls released by public affairs firm Hawker Britton revealed a strong support in Australia for an agreement with India, with 47 per cent of respondents supporting an FTA and 28 per cent opposing.