Tourism, education key to India-Aust trade

Tourism, education key to India-Aust trade

As Australia looks to hitch itself to another rising Asian superpower, economists warn it needs to look beyond its traditional strengths in the mining sector.

After successfully reaching trade deals with China, Japan and Korea, the federal government is hoping to secure a free trade agreement with India by the end of 2015.

A deal with India could have major implications for the Australian economy down the track, especially given the International Monetary Fund expects India to grow at a faster rate than China in 2015.

But if Australia wants to take full advantage of India’s widely expected transition into a global economic powerhouse, education and tourism may well be the key, rather than iron ore.

The country should focus on making its services sector, in particular tourism and education, as competitive as possible, Credit Suisse Australia chief investment strategist David McDonald said.

“We have to focus more on some of these future growth industries … because that’s where a lot of the jobs growth is going to be,” he told AAP.

The resources sector would still likely benefit from rapid growth in India, though energy companies stand to be the major winners as India itself is a major iron ore producer.

“There are some things India has plenty of but there are some things they will need,’ he said.

University of NSW economist Tim Harcourt said India was already a huge market for education providers, but universities needed to brace themselves for increasingly tough competition.

“I think India will be a lot more competent with education, they’ll be trying to forge relationships with Harvard and Caltech, so we’ll have to be a bit more aggressive because they’ve got choice,” he said.

Mr Harcourt talks up the prospects for Australian and Indian trade in his book Trading Places, arguing common links – such cricket and a shared British history – could give Australia an advantage over other countries.

“They will be a superpower, but they will be one that’s friendly to Australia and that’s probably good for us,” he said.

But he says India still lags a long way behind the likes of China and Japan as an export market for Australia, and even with rapid growth it will take a long time to catch up.

According to bureau of statistics figures, Australia exported more than $8 billion worth of goods and services in india in 2013/14, which is less than one tenth of that exported to China.

But India is Australia’s sixth largest export market and Mr Harcourt says local businesses looking to expand overseas shouldn’t overlook the country.

“Any Australian company looking to expand into Asia should have a China Strategy, an India Strategy and an ASEAN strategy,” he said

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Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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