PERTH (miningweekly.com) – The Australian resources sector has welcomed the federal government’s response to the India Economic Strategy to 2035, which acknowledged the role that mining would play in the future.

The India Economic Strategy report, which was commissioned earlier this year, recommended practical measures to cement India as a top economic partner for Australia.

"This report provides a roadmap for our economic future with India," said Prime Minister Scott Morrison.

"India is the world's fastest growing major economy and offers more opportunity for Australian business over the next 20 years than any other single market."

The federal government has provided its support for the 20 priority recommendations made in the report, and over the next 12 months will focus on a number of key actions, including the expansion of the Australia-India Mining Partnership at the Indian School of Mines, which connects Australian companies to India's minerals-rich north-eastern states, supported by the new Consulate-General in Kolkata.

The Minerals Council of Australia (MCA) has welcomed the federal government’s endorsement of the report, with CEO Tania Constable saying that as the world’s fastest growing large economy, India presented significant opportunities for Australia’s minerals sector.

“The establishment of the Australia-India Mining Partnership at the Indian School of Mines is an important initiative to showcase Australian mining technological innovation and Australia’s world-leading expertise in mining governance and environmental management,” Constable said.

She noted that the government’s announcement to establish a consulate in Kolkata in the first half of 2019 should also be of particular value to Australian small and medium-sized mining, equipment, technology and services (METS) companies.

“Australia-India trade was worth A$27.4-billion in 2017. Australia’s minerals sector has had a big role to play in this trade relationship, which has grown from Australia’s ninth largest to fifth largest trading partner in five years.  

“In 2017, Australia’s minerals exports were worth more than 71% or A$11.2-billion of our A$15.7-billion in merchandise exports to India,” Constable said.

Coal was worth A$9.2-billion, a growth of 38% in 12 months and an 11% yearly growth trend over the past five years, with other key minerals exports including gold, which reached A$689-million, and copper, at A$688-million.

Constable noted that with 300-million people in India still not connected to the electricity grid, and 500-million people depending on biomass for cooking, India was expected to add the equivalent of the European Union’s current power generation capacity to meet expected energy demand to 2040.

“Australia is, therefore, well placed to help meet India’s energy demands, including the supply of coal to India’s new high energy, low emission power plants which will help India in meeting its Paris Agreement targets,” she said.

“There will also be opportunities for the A$90-billion METS sector as India’s mining industry modernises and explores potential efficiency, productivity and safety improvements.

“As the government’s response acknowledges, mining and resources should remain one of the ‘lead sectors’ for Australia’s economic engagement with India.”