Towards a Queensland–India Trade and Investment Strategy August 2018 Mumbai

Overview Towards a Queensland–India trade and investment strategy August 2018 Mumbai

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. China 1,000 The way that people live will have an impact on their consumption patterns and will drive both trade and government 500 investment in services and infrastructure. Australia 0 Key observations 2000 2010 2020 2030 2040 2050 2060 • India is likely to overtake China to become the world’s most populous country in the next decade and is forecast to continue growing until it peaks in around 2060 with over two India’s population by broad age group, millions, 2015 billion people.

248 250 • GDP per capita is 250% higher today than it was in 2000 231 and by 2022 it is forecast to be 50% higher again than it is 196 today (2017: A$2,641). 152 • The Indian middle class3 represents around 50% of the 115 country’s population. Its population is also skewed towards 72 the young, with 53.6% of the country’s total population under 45 30 years’ of age. • India has a large working-age population which, between 0-9 9-19 20-29 30-39 40-49 50-59 60-69 70+ 2010 and 2030, is expected to grow by a further 241 million people. Proportion of Indian population in urban areas % 2000-2025 • One-third of India’s population currently lives in urban areas, which is expected to increase to 42.5% by 2025. 50 40

30 20 Key question 10 • What new trade and investment 0 opportunities are emerging as the 2000 2005 2010 2015 2020 2025 demographics of India change?

3. Defined as spending between $2 and $10 per day Data sources: IMF; United Nations Department of Economic and Social Affairs, Population Division – World Population Prospects; World Bank; United Nations – World Cities Report 2016

8 Overview: Towards a Queensland–India trade and investment strategy INDIA’S GROWTH STORY

India’s size and geography have resulted in multiple regional markets, each with specific characteristics and opportunities.

India’s key regional markets

When considering the Indian market, its size and regional variation mean that individual opportunities are better identified and pursued on a state or union territory basis.

Key observations • India is a federal union, comprising twenty-nine states and 10 4 seven union territories. This number has changed in recent times, with three new states formed in 2000 and another created in 2014. 9 6 3 • Each region has unique elements, such as its reform agenda and key development initiatives, ease of doing business, 1 new sector-specific hubs and zones, and official languages. 8 Trade and • In terms of state domestic product, the major states are Investment located in central and southern regions of India. Queensland’s 5 7 office in Bengaluru (Bangalore) 2 Key question • How can India’s regional specialisations and expertise be accessed?

State / Union Nominal GSDP 2 5 Territory A$ billion4 Population (m) Area (km ) Official language Specialisations and key markets

Largest cotton producer in India, and Mumbai is a national 1 Maharashtra 552 112.4 308,252 Marathi finance hub, home to the Indian stock exchange

Diversified manufacturing sector, including automotive, 2 Tamil Nadu 315 72.2 130,060 Tamil engineering, pharmaceuticals, and textiles. Largest number of factories and industrial workers in India

Significant refining capacity, one of India’s largest producers 3 Gujarat 295 60.4 196,244 Gujarati of crude oil (onshore)

4 Uttar Pradesh 294 199.8 240,928 Hindi Largest producer of food grains in India

IT hub of India and home to the fourth-largest technology 5 Karnataka 253 61.1 191,791 Kannada cluster in the world. The state also has sector-specific special economic zones for key industries (eg IT, biotechnology)

6 West Bengal 207 91.3 88,752 Bengali Largest producer of rice and fish in India

7 Andhra Pradesh 172 49.7 160,205 Telugu Brackish-water shrimps and freshwater prawns

8 Telangana 166 35.0 112,077 Telugu, Urdu Pharmaceuticals

9 Madhya Pradesh 163 72.6 22,429 Hindi Rich in natural resources (fuels, minerals) including coal

10 Delhi 135 16.8 1,483 Hindi India’s biggest milk market, and a top tourist destination

4. GSDP at current prices, exchange rate used: A$1₹= INR 50.68; 5. Based on State Budgets 2018–19 PRS Legislative Research Overview: Towards a Queensland–India trade and investment strategy 9 INDIA’S GROWTH STORY

To meet the needs of its growing population, significant investment is planned in India to develop sustainable cities and infrastructure.

Increasing infrastructure demand

Number of Indian cities by population size The combination of India’s increasing population and Units, 2000–2020 urbanisation means that existing cities will be placed under additional stress, while at the same time new cities will emerge. 10 million+ 1–5 million 300,000–500,000 Significant investment will be required to provide relevant 5–10 million 500,000–1 million infrastructure and services. 238 250 The demand for new, high-capacity infrastructure and services 212 2 7 provides opportunities for domestic and international 6 businesses to partner with India throughout design, delivery and 200 3 60 management stages. 56 150 76 Key observations 64 • The latest data from the United Nations shows that from 2015 100 to 2020, the number of Indian cities with more than 300,000 people will increase by 26, which includes 4 new or bigger cities with more than 1 million people. 50 83 93 • Recent government infrastructure initiatives include the 0 Smart Cities Mission, which involves development of 2015 2020 100 smart cities by 2020, part of a larger plan to develop industrial corridors connecting big metropolitan hubs. Indian government infrastructure spending • Over the past five years, India has invested A$750 billion in % of GDP, 2012–2017 infrastructure and has allocated A$79 billion in the 2017–18 budget. It is estimated that around A$5,722 billion of infrastructure investment will be required by 2040. 5 Central State 4.5% 4.4% • The Delhi–Mumbai Industrial Corridor is a major 4 infrastructure program comprising many large-scale projects 3.5% 3.4% 3.5% 3.5% (including new industrial cities), which aims to expand India’s manufacturing and services sector. 3 • Significant Indian transport projects include the Sagarmala Project, which provides infrastructure to transport goods to 2 and from ports quickly and efficiently (A$237 billion), and the Bharatmala Project, which creates a road network to link 1 India’s west-to-east land borders (A$2.8 billion).

0 2012 2013 2014 2015 2016 2017 Key question • How can we partner in designing and delivering these large-scale infrastructure projects?

Data sources: United Nations Department of Economic and Social Affairs, Population Division – World Urbanisation Prospects; Reserve Bank of India; Global Infrastructure Hub

10 Overview: Towards a Queensland–India trade and investment strategy INDIA’S GROWTH STORY

The increasing population of both India and the world will heighten the need for sustainable approaches to food production and energy production.

Sustainability for the future

Indian food demand, tonnes As the world’s population continues to grow, greater pressures Millions, 2010–2030 are being placed on the world’s resources. 350 Food grains Apart from the obvious issues of depleting finite natural 300 resources, there are also challenges relating to non-finite 250 resources, such as food, demand for which is forecast to rise by 200 at least 20% over the next 15 years. 150 Vegetables Sustainability is not just about finding greener, renewable 100 sources of energy and other consumables, but also about 50 improving agricultural performance. This includes upgrading 0 infrastructure and supply chains, and improving processes to 2010 2020 2030 gain efficiencies, improve yield and reduce waste.

Cereal and rice yield, kg/hectare Key observations Thousands, 2016 • As India’s population and wealth grows, food demand will 10 will increase – compared to 2010 levels, the demand in 2030 Rice 8 for food grains and vegetables is forecast to increase by Cereal 31% and 55% respectively. 6 • Increasing food demand creates ongoing challenges in India, 4 where yield rates lag behind other countries and the world average – Indian yields are less than half of those of the USA 2 and China. 0 • These challenges can be attributed to capacity constraints in USA China Japan World India the rural transport networks, variable awareness about crop treatment, limited access to new farming technologies, and India’s wastage of agricultural produce dependence on rainfall from an irregular monsoon. 2013

Value loss value Commodity / crop Total loss (%) (in Rs. crore) Milk 0.9% 4,409 Key questions Meat 2.7% 1,235

Marine fish 10.5% 4,315 • How can Queensland help India to create a

Inland fish 5.2% 3,766 more efficient agriculture sector through the sharing of agtech and specialist services? Egg 7.2% 1,320 Poultry meat 6.7% 3,942 • Given Queensland’s sophisticated supply Cereals 4.7% – 6.0% 20,698 chains and export capabilities, how can

Pulses 6.4% – 8.4% 3,877 we encourage storage and distribution

Oilseeds 3.1% – 10.0% 8,278 innovation in India?

Fruits and vegetables 4.6% – 15.9% 40,811

Data sources: Indian Food Security Portal, 2030 Food Demand and Supply Projections; World Bank database; Food and Agricultural Organization of the UN; India’s CIPHET

Overview: Towards a Queensland–India trade and investment strategy 11 INDIA’S GROWTH STORY

India’s economy is becoming more regulated, providing benefits to government,to government, citizens citizens and and businesses. businesses

Increased regulation of the Indian economy

Gross tax revenue per capita Like many developing economies, India has long maintained a A$, 2012–2018 (F = forecast) large informal sector, which poses challenges for international investment and trade.

278 The Indian Government has taken recent steps to increase +12% 252 regulation and digitise the economy. This presents benefits to 217 government, Indian citizens (through increased public spending) 187 and established businesses, which can leverage and depend on 173 159 more efficient regulations, systems and supply chains. 138 Key observations • Gross tax revenue in India has been steadily increasing and has grown by 12% per annum since 2012. Increases in tax revenues are partly due to recent initiatives of the Indian government to encourage greater participation in 2012 2013 2014 2015 2016 2017 2018F tax systems. • A new goods and services tax (GST) was introduced in Volume of electronic payments July 2017, which will further add to taxation revenues by Millions, 2016–2017 extending the tax base. The GST allows the free movement of goods and services between states, and significantly reduces ‘red tape’ and other costs for businesses. +49% 998.5 • Following demonetisation of Rs 500 and 1,000 banknotes 671.5 (which led to the withdrawal of 86% of all bank notes from circulation), the government announced a number of measures to encourage digital transactions, including zero transaction fees on digital payments and no service taxes on digital transactions of values up to Rs 2,000. • In the year following demonetisation, digital transactions in Nov-16 Nov-17 India have increased both in terms of volume (up 49%) and value (up 29%).

Value of electronic payments A$, trillions, 2016–2017 Key question +29% 2.39 • How do recent and proposed changes to the 1.85 Indian economy impact our relationship and future opportunities?

Nov-16 Nov-17

Data sources: Indian Food Security Portal, 2030 Food Demand and Supply Projections; World Bank database; Food and Agricultural Organization of the UN; India’s CIPHET

12 Overview: Towards a Queensland–India trade and investment strategy INDIA’S GROWTH STORY

Nearly 30% of India’s population now has access to the internet and there are expected to be nearly two billion connected devices in India by 2020.

Technology usage

People with access to the internet in India Access to the internet significantly improves information and % population, 2007–2016 communication flows and enables ecommerce opportunities.

30 This in turn allows consumers to access new products and 25 services. At the same time, enterprises have greater reach and new digital channels, both domestically and also in terms of 20 inbound and outbound international markets. 15 10 Key observations 5 • The number of Indians with access to the internet has 0 increased dramatically over the last 10 years, from less than 5% of the population in 2007 to almost 30% in 2016. 2007 2010 2013 2016 • This figure is expected to continue growing, with the McKinsey Global Institute estimating that by 2025 there will be 700–900 million smartphone users with mobile Mobile device subscriptions in India internet access. Units, billions, 2007–2016 • Internet access is heavily skewed towards mobile use – 1.2 in 2016 Indians accessed the internet through their mobiles 1.0 nearly 80% of the time. The number of mobile devices in India is also rapidly growing. 0.8 • India is on the verge of a digital revolution, which presents 0.6 many opportunities in financial services and IT services 0.4 (eg digital health solutions that can impact reach and delivery of rural health care). These opportunities are further 0.2 supported by government initiatives including Startup India 0.0 and Digital India. 2007 2010 2013 2016 Key questions

Connected devices in India • In what ways can we use technology and Units, billions, 2017–2020 digital channels to better engage Indian 1.9 customers? • Which technology-enabled products and services will be in high demand as more of India’s growing population gains access to 0.6 smart devices and the internet?

2017 2020

Data sources: World Bank database; Deloitte TMT India Predictions 2017; McKinsey Global Institute – India’s Ascent; StatCounter Global Stats

Overview: Towards a Queensland–India trade and investment strategy 13 INDIA’S GROWTH STORY

India is becoming more competitive as a preferred place to do business, with a number of structural reforms planned to further improve the ease of doing business.

Ease of doing business

India ease of doing business Rankings, 2012–2017 To be successful, we should understand the differences between 134 134 131 131 130 Queensland and Indian cultures and learn how to navigate the relationship-based business environment. 100 Key observations • Indian business is strongly relationship-based, preferencing businesses that have an established local presence and network. Partnering is often the recommended option for foreign businesses entering the Indian market as partners can provide invaluable knowledge and existing relationships. • Recent reforms have significantly improved India’s global ranking in terms of ease of doing business. 2012 2013 2014 2015 2016 2017 • The changes include structural reforms related to starting a business, obtaining credit, taxation, trading across state borders, enforcing contracts and resolving insolvency. India business confidence • The government is looking to implement additional reforms Index, 2012–2017 to further improve its ranking, including simpler registration of firms, better enforcement of contracts and improved 56.2 56.5 58.3 54.8 53.9 processes for opening bank accounts. 49.9 • Since May 2014 the Indian government has taken many positive steps to implement its pro-business and pro- investment agenda and has announced to the world that India is open for business.

Key questions • What are the challenges of doing business in 2012 2013 2014 2015 2016 2017 Queensland and India?

• How can we better appreciate our cultural differences and similarities with a view to forming enduring relationships?

Data sources: World Bank, Confederation of Indian Industry

14 Overview: Towards a Queensland–India trade and investment strategy INDIA’S GROWTH STORY

As India grows to become one of the world’s largest economies, Queensland has an opportunity to become an active partner and form strong and enduring relationships

Supporting India’s growth story

Even by today’s measures, India is a significant economic power The next period of growth for India will not be without that dwarfs not only Queensland, but Australia as a whole. challenges. However, challenges come with opportunities, This imbalance will become even more pronounced as India and Queensland is well-placed to be an active partner with continues on its growth journey. By 2050 it is expected to have India in supporting mutual growth through building on our an economy which is almost 60 times the size of Queensland. existing strong relationship.

While India is a growing nation, growth is largely focused on Prioritising shared challenges faced by both India and domestic consumption, with limited participation in global Queensland is one way to provide a focus that will result in exports (with the exception of services exports) when compared rapid innovation that benefits both partners, and bolsters the to other developing economies. relationship that exists today.

Like all growing nations, India needs to consider energy security, food security, health care, education and future infrastructure. While hungry for all of these and more, India is also a nation with a large workforce and the potential for self-sufficiency by adopting smarter processes and technologies.

INDIA AUSTRALIA QUEENSLAND

People

= 25m

GDP

= US$250b

GDP Growth = 1%

Data sources: The World Bank Database; PWC – The World in 2050; KPMG analysis

Overview: Towards a Queensland–India trade and investment strategy 15 Our relationship

• Queensland and India share a cultural heritage • India hosts our Trade and Investment Queensland as members of the Commonwealth and have office in Bengaluru (Bangalore). Likewise, Queensland a rich history of our people sharing experiences, is host to an Honorary Consul for India in Brisbane, ideas and expertise. as well as an active branch of the Australia India Business Council. • The trade relationship between Queensland and India is strong and growing. • Given the potential to deepen this relationship, Queensland is seeking to build stronger ties • The ties between Queensland and India are stronger with India. than just trade and investment. Queensland is home to a rich Indian diaspora – 49,000 Queensland residents were born in India. This represents strong community-based relationships with India. • This relationship already supports significant economic development and investment in infrastructure in Queensland and supports employment in numerous fields throughout the state.

16 Overview: Towards a Queensland-India trade and investment strategy OUR RELATIONSHIP

Queensland is home to a large and diverse Indian diaspora – 49,000 residents of Queensland were born in India. This supports strong community-based relationships.

Our people – Queensland’s Indian diaspora

The United Nations’ estimates that, in 2017, there were Key observations 16.6 million Indians living abroad. While the growing number of Queensland residents born in India demonstrates a quantifiable • Queensland is home to more than 10% of Australia’s growing link, there are also rich cultural connections of the Indian Indian-born population. The diaspora is an active part of diaspora that sit behind the numbers. Queensland society and maintains links with India.

Queensland’s community of Indian-born residents contributes • Queensland’s urban centres attract the largest number to the state’s celebrated multicultural society. of Indian residents; the greater Brisbane area is home to 35,335, or 72% of the state’s total.

Estimated resident population of Queensland (born in India) Thousands, 2006–2016 Case study 2016 49 Queensland–India Women’s Business Advisory Circle 2015 44 Trade and Investment Queensland has created the 2014 40 Queensland–India Women’s Business Advisory Circle, a 2013 37 network for businesswomen in Queensland and India to 2012 35 support each other in doing business. 2011 30 Made up of business influencers, existing and new 2010 27 exporters, as well as facilitators such as Trade and Investment Queensland and Austrade, this advisory 2009 25 circle is primarily a LinkedIn group where members can 2008 21 interact, seek and share advice, discuss export issues 2007 17 and share success stories. 2006 13

Queensland is home to a large and diverse Indian community, with at least 27 Indian associations: • Arya Pratinidhi Sabha of Brisbane • Global Organisation for Indian • Kshatriya Society of Brisbane Family & Youth – Brisbane • Australia–India Business Council • Malayalee Association of Queensland Inc • Global Organisation of People of Indian • Australia–India Cultural & Business Society • Marathi Association of Queensland Origin • Australian Folklore Association • Punjabi Cultural Association Queensland • Gujarati Association of Queensland • Bengali Society of Queensland • Queensland Telugu Association • Hindu Mandir Association Queensland • Bihar Jharkhand Sabha of Australia & NZ • Shree Sanatan Dharam (H) Association • Hindu Society of Queensland Queensland • Brisbane Tamil Association Inc • Hindustani Language School • Tamil Association of Queensland • Club De Goa • India Australia Society • The Odia Community of Australia • Federation of Indian Communities of • Jvala Charitable & Cultural Society Inc Queensland • VHP (Vishva Hindu Parishad) of • Kashmiri Pandits Australia Inc Australia Inc

Note: Not all organisations listed above will be actively approached for consultation; stakeholders (including those above) are invited to make submissions in relation to this document. Further details on page 5.

Data sources: ABS Census 2016 QuickStats; High Commission of India (Canberra)

Overview: Towards a Queensland–India trade and investment strategy 17 OUR RELATIONSHIP

The trade and investment ties between Queensland and India start with people.

Our people – skilled visas and remittance to India

Skilled migration to Queensland Interpersonal relationships are a key enabler of trade in both Visa holders, 2010–2017 goods and services. In order to understand fully the economic relationship between Queensland and India, it is important to Year Total inbound Origin: India understand the relationships between its people.

2017 20,480 3,353 The data and commentary on this page provide a snapshot of 2016 23,208 4,409 Indian migrants who are residing in Queensland and Australia,

2015 27,316 5,488 including those who hold temporary skilled working visas.

2014 30,850 5,691 As well as permanent migration, there is also temporary people

2013 31,265 4,578 movement between India and Queensland in the form of tourism and education. 2012 27,774 2,738 The movement of people is just the starting point for linkages 2011 22,441 1,670 between India and Queensland. 2010 50,455 1,603 Key observations • Foreign direct investment and trade in goods and services follow interpersonal relationships; strong and enduring relationships have a compounding effect on total trade. • The estimated remittance from Queensland to India increased by more than 17% per annum from 2010 to 2016. • A consistent share of skilled migration to Queensland comes from India, mainly within the hospitality sector. Café / restaurant owners and chefs / cooks represented 39% of all primary visa holders in Queensland in 2017. • ICT occupations represented 20% of all primary visa holders in Queensland in 2017.

Estimated remittance from Queensland to India A$, millions 2010–2016 Key questions 300 • How can our relationships help us to do business in Queensland and India? 200 • How can we ensure our existing relationships 100 will benefit us into the future?

0 • What would help us to develop new 2010 2011 2012 2013 2014 2015 2016 relationships in key sectors into the future?

Data sources: ABS 34120DO009_201516; ABS Census 2016 QuickStats; World Bank; DFAT Visa Data; KPMG analysis

18 Overview: Towards a Queensland–India trade and investment strategy OUR RELATIONSHIP

The goods trade relationship between Queensland and India is strong and growing.

Bilateral goods trade

Queensland merchandise trade with India by category Bilateral trade of goods is perhaps the most fundamental A$, billions, 2012–13 to 2016–17 measure of interaction between two regions, and often creates economic dependencies with ongoing political implications. 10 Analysis of the trade relationship of India and Queensland can 9 be used as the basis for expanding the existing economic ties Exports and moving into adjacent sectors and regions or further up the 8 value chain. 7

6 Key observations 5 • The trade relationship is characterised by exports from Queensland to India, with limited growth in goods imported 4 into Queensland from India. 3 • Around 67% of Queensland exports to India are coal and 2 related goods. Queensland exports around 71% of Australia’s total exports to India in this category. 1 Imports • The second-largest export category to India is fruit and 0 vegetables, with Queensland exporting around 57% of 2013-14 2014-15 2015-16 2016-17 Australia’s total exports to India in this category.

Queensland merchandise trade with India by category A$, millions, 2016–17

Exports to Imports Trade category India from India Key questions Food and live animals 938 28 • How can we continue to grow our goods trade? Chickpeas 8736 –

Beverages and tobacco 0 0 • What is required in order to move towards more value-added goods trade? Crude materials, inedible, except fuels 234 13

Mineral fuels, lubricants and related materials 6,234 20

Bituminous coal 6,233 –

Animal and vegetable oils, fats and waxes 0 2

Chemicals and related products, nes 8 128

Manufactured goods classified chiefly by 4 180 material

Machinery and transport equipment 11 196

Miscellaneous manufactured articles 5 171

Commodities and transactions not classified 1,817 21 elsewhere in the SITC

TOTAL 9,251 758

6: Representing 64.2% of Queensland’s total chickpea exports (A$1359.7M). In 2017-18, Queensland total chickpea exports fell by 51.6% to A$658.3M. Data source: ABS 5368.0

Overview: Towards a Queensland–India trade and investment strategy 19 OUR RELATIONSHIP

The services trade relationship between Australia and India is less significant than the goods trade, but has the same characteristics of Australia exporting more than it imports from India.

Bilateral services trade

Australian services trade with India Trade in services is a hallmark of the knowledge economy, and A$, billions, 2012–13 to 2016–17 is often more heavily dependent on interpersonal relationships compared to trade in goods. 4.5 Exports This section looks at Australia’s services exports on a balance 4.0 of payments (BOP) basis, to understand the linkages between Australia and India. Note that BOP data is not available at the 3.5 Queensland level. 3.0

2.5 Case study Imports Queensland Skills and Education Consortium 2.0 The Queensland Skills and Education Consortium (QSEC) 1.5 is delivering high-quality industry-focused skills programs in India to foster employment. Its partners include TAFE 1.0 Queensland, Griffith University, Australian Retail College, 0.5 Intech Institute of Technology and FoodCoach Institute. Since its establishment in 2016, QSEC has signed 0.0 training delivery agreements with several Indian states 2013-14 2014-15 2015-16 2016-17 and organisations, including Kerala, Chhattisgarh and Jharkhand and the Skills Council for Mining Sector.

Australian services trade with India by category A$, millions, 2016–17 Key observations • Services trade is also characterised by exports, with limited Exports Imports Trade category to India from India growth in imports from India.

Transport 37 28 • The majority of bilateral trade in services is from travel-related services, which includes all goods and services acquired for Travel (including education-related) 3,854 – personal use by travellers (including Indian students). Insurance and pension services 6 0 • The second-largest category for import services from India Financial services 48 13 is telecommunications, computer and information services,

Telecommunications, computer and information driven by outsourcing by Australian businesses. 47 20 services

Personal, cultural and recreational services 19 –