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Towards a Queensland–India Trade and Investment Strategy August 2018 Mumbai Overview Towards a Queensland–India trade and investment strategy August 2018 Mumbai Bengaluru (Bangalore) Brisbane Trade and Investment Queensland office Tourism and Events Queensland office Trade and Investment Queensland (TIQ) is the Queensland Government’s dedicated global business agency. Through TIQ, the Queensland Government has one of Australia’s largest international networks of 15 trade and investment offices in 12 markets. Our international presence promotes Queensland goods and services, and facilitates investment attraction to Queensland. Led by trade and investment commissioners, the offices are a vital connection between international investors and business opportunities in Queensland. They provide local expertise in foreign markets, facilitate business introductions, and assist inbound and outbound delegations, helping our businesses expand their international footprint. TIQ’s India office was established in Bengaluru (formerly Bangalore) in 2004. It is complemented by the India office of Tourism and Events Queensland, located in Mumbai. 2 Overview: Towards a Queensland-India trade and investment strategy Foreword Queensland has a strong and important relationship with India and it is important that this relationship continues to deepen. Queensland’s future in the Asian century is bright. We have the opportunity to expand on our current agricultural trade with increased value-adding to Global growth is shifting east and driving strong meet the demands of India’s growing and discerning demand for what Queensland has – safe food, middle class. abundant resources, trusted services, unmatched tourism experiences, outstanding skills and knowledge, We have the opportunity not only to grow our resource and a secure environment in which to invest. industries and help India develop its own, but also to be a part of India’s transition to renewable energy Last year the Queensland Government launched the technologies. Advancing Trade and Investment – Queensland Trade and Investment Strategy 2017–2022 with the aim of And we have the opportunity to dramatically expand our positioning Queensland as Australia’s most innovative services sector in education, health care, technology and dynamic trading economy. and tourism. Now, we are focusing on building stronger ties with However, in order to build a relationship of lasting value – India through growing bilateral trade and investment. one that builds on the Gold Coast 2018 Commonwealth Our relationship is grounded in our shared cultural heritage Games legacy, it cannot be one-sided or based on trade as members of the Commonwealth, and the Trade and alone. Our ties with India run deeper than that. Investment Queensland office in Bengaluru demonstrates The fact is that 49,000 people living in Queensland Queensland’s ongoing commitment to India. were born in India. That means Queensland is home With India already the world’s largest democracy and to a rich Indian diaspora which forms the foundation set to become the world’s second-largest economy, of strong people-to-people relationships between us. our relationship represents an enormous opportunity These interpersonal relationships have a compounding for Queensland to play a supporting role to this effect and are a key enabler of investment and trade. economic powerhouse. As we seek comment on this document over the coming And last year I travelled to India to investigate what this weeks, I look forward to hearing your views on how we role could entail and promote India’s investment in can strengthen this critical, enduring relationship. our state. The Queensland Government’s objective is to secure My Government’s Advance Queensland agenda is all jobs and prosperity for Queenslanders, leverage existing about positioning Queensland for the future. Because in capabilities to solve shared challenges, and embrace a changing world, standing still is to fall behind. emerging opportunities, as we play a greater role in the great Indian growth story. This paper is the first step to mapping our existing strong ties with India and creating an even greater bond as we make ourselves part of India’s amazing growth story. The Honourable Annastacia Palaszczuk MP Premier of Queensland Minister for Trade Overview: Towards a Queensland–India trade and investment strategy 3 Table of contents Section Page Invitation to participate 5 India’s growth story 6 Our relationship 16 Next steps 23 4 Overview: Towards a Queensland-India trade and investment strategy INVITATION TO PARTICIPATE We are seeking your support to develop a Queensland–India trade and investment strategy – together we can put our best foot forward to build enduring relationships. Next steps STEP STEP STEP ONE TWO THREE This document is the Consultation will take The final Queensland–India first step in a journey place between August and trade and investment which will culminate in September 2018. strategy will aim to the development of a articulate the best way to Stakeholders from Queensland–India trade increase investment and Queensland and India in and investment strategy. trade between Queensland both the private and public and India. sectors will be invited to comment on this document and to be involved in the development of a Queensland–India trade and investment strategy. To be involved, please email your submission to [email protected] or write to Trade and Investment Queensland PO Box 12400, Brisbane Qld 4003 Australia See tiq.qld.gov.au for details on closing dates. Overview: Towards a Queensland–India trade and investment strategy 5 India’s growth story • Already the world’s largest democracy, India is also • Nearly 30% of India’s population now has access to set to become the world’s second-largest economy the internet and there are expected to be nearly two and most populous nation. billion connected devices in India by 2020. • India’s size and geography have resulted in multiple • India is becoming more competitive as a preferred regional markets, each with specific characteristics place to do business, with a number of structural and opportunities. reforms planned to further improve the ease of doing business. • To meet the needs of its growing urban population, significant investment is planned in India to develop • There are a number of flagship government programs sustainable cities and infrastructure. underpinning the economic development and reform agenda in India today, including Make in India, • India has a comparatively young population and its Digital India, Financial Inclusion, Smart Cities, Skill middle class is rapidly increasing, with more people India, Clean India, and Startup India. These programs moving to urban areas. Shifting demographics and provide a useful foundation for trade and investment associated increases in demand for health services efforts between Queensland and India. will present opportunities to invest in health care infrastructure and establish a universal health • As India grows to become one of the world’s largest coverage system. economies, Queensland has an opportunity to become an active partner and form strong and • The increasing population of both India and the world enduring relationships. will heighten the need for sustainable approaches to food and energy production. • India’s economy is becoming more regulated, providing benefits to government, citizens and businesses. 6 Overview: Towards a Queensland-India trade and investment strategy INDIA’S GROWTH STORY Already the world’s largest democracy, India is also set to become the world’s second-largest economy and most populous nation. India’s economy Gross domestic product rankings and forecast 2016, 2060 The world is watching India as it continues on its growth trajectory to overtake China as the most populous nation. Rank 2016 2060 India is forecast to rise through the global gross domestic 1 China China product (GDP) rankings, potentially emerging as the second- largest economy by 2050. 2 EU India 3 US US A nation’s economics are intrinsically linked to its population, because it contributes to both production (in terms of available 4 India EU workforce) and overall domestic consumption. To truly appreciate the journey that India is taking, it is important to consider the rate of change, as well as the forecast size of Gross domestic product in real terms1 the country. A$, trillions, 2010–2060 India’s rapidly increasing momentum will have implications 80 China and opportunities for mature economies around the world, including Queensland. 60 Key observations 40 India • India’s GDP is currently upwards of A$3.5 trillion, and its 20 economy is forecast to be the fastest growing economy Australia through to 2050, by which time it will surpass the US and EU 0 economies to be the world’s second-largest behind China. 2010 2020 2030 2040 2050 2060 • In recent years the Indian economy has not realised some of the more ambitious growth previously forecast. Nevertheless, strong future growth is still expected, with India’s economy in 2060 forecast to be nearly eight times larger than in 2017. Indian nominal gross domestic product per capital2 A$, 2000–2023 4,500 4,000 3,500 Key question 3,000 • How should businesses position 2,500 themselves to respond to increasing 2,000 demand for goods and services? 1,500 1,000 500 0 2000 2005 2010 2015 2020 2025 1. OECD GDP long-term forecast 2013–2060; Exchange Rate 1 A$ to 1 USD$: 0.7508 (as at 15 May 2018) 2. IMF Gross Domestic product per capita (current prices); Exchange Rate 1 A$ to 1 USD$: 0.7508 (as at 15 May 2018) Overview: Towards a Queensland–India trade and investment strategy 7 INDIA’S GROWTH STORY India has a comparatively young population and its middle class is rapidly increasing, with more people moving to urban areas. India’s demographic trends Total population, millions, 2000–2060 As the world’s population continues to grow, greater pressures are being placed on the world’s resources. 2,500 India As India becomes a wealthier country, so too do its people; 2,000 a burgeoning middle class of a comparatively young and growing population will have higher levels of disposable income to spend 1,500 on goods and services not previously accessible.
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