January 21-23, 2018 – New Delhi, India Welcome Welcome DO NOT PRINT Every effort has been made to ensure that this program is free from error or omissions. However, there may be modifications of participants, speakers and the program between publication and the Dialogue. Welcome from the Co-Chairs It is our pleasure to welcome you to the third annual Australia India Leadership Dialogue in New Delhi in January 2018. The centre of the world’s economic Our economic and strategic interests and political gravity is shifting are converging strongly. India’s rapid ever further towards the Indo- economic growth and its burgeoning Pacific region. As it does so, new demand for energy, resources and opportunities are being identified – education have made it one of and with them, new challenges. Australia’s largest export markets. Today, Indians are welcomed as the Our countries, which face each largest national group among skilled other across the Indian Ocean, are migrants to Australia. ideally placed to develop a close, comprehensive partnership to take Beyond our joint economic interests, advantage of those opportunities and our countries have a shared strategic to confront those challenges. interest in ensuring a balance in the Indo-Pacific so that the region is not Few countries in the Indo-Pacific dominated by any one hegemonic have more in common than India power. This shared interest in regional and Australia. We speak the same security and stability is fundamental to language. We respect the same system our joint economic interests. of law. We are both multicultural, federal democracies. We even follow the same sports. Relations between India and Through the Dialogue, we seek to build Australia have deepened dramatically deeper co-operation, closer friendships over recent years. and stronger relationships based on trust between leaders in government, The Australia India Leadership business and civil society from Dialogue brings together senior leaders India and Australia. We will do this from our nation’s government, business through the open discussion, which and civil society. We will be discussing will now follow, and by identifying the mutual interests that lie at the very new ways and new opportunities to heart of our relationship – economic work together in coming years. We are priorities such as energy, education delighted to host you in New Delhi, and skills, health, agriculture and and we look forward to working with agro-processing, and infrastructure; you all for the mutual benefit of our and our converging geostrategic and two great nations. security interests. Ross Fitzgerald and Amitabh Mattoo Co-Chairs, Australia India Leadership Dialogue Program Program Australia India Leadership Dialogue 2018 Program Monday 22 January 2018: Dialogue Discussions 8.45 am - 9.00 am Arrival of Guests Diwan-I-Am Room Lower Lobby Taj Mahal Hotel 9.00 am - 9.20 am Welcome and Introductory Remarks Ross Fitzgerald Co-Chair, Australia India Leadership Dialogue Amitabh Mattoo Co-Chair, Australia India Leadership Dialogue Craig Jeffrey Director and CEO, Australia India Institute 9.20 am - 9.50 am Special Remarks on Behalf of Delegations Hon David Littleproud Minister for Agriculture and Water Resources Government of Australia Hardeep Singh Puri Minister of State (Independent Charge) Ministry of Housing and Urban Affairs Government of India James McGrath Assistant Minister to the Prime Minister and Assistant Minister for Regulatory Reform Government of Australia Shashi Tharoor MP for Thiruvananthapuram, Author and Chairman of the DO NOT PRINT Parliamentary Standing Committee on External Affairs Penny Wong Shadow Minister for Foreign Affairs Leader of the Opposition in the Senate Government of Australia 9.50 am - 11.00 am Report on Australia’s India Economic Strategy Peter Varghese Chancellor, University of Queensland Rajiv Kumar Vice Chairman, NITI Aayog - National Institution for Transforming India Discussion Moderated by Co-Chairs 11.00 am - 11.10 am Break 11.10 am - 12.15 pm Increasing Australia India Economic Cooperation Discussion Moderated by Co-Chairs 12.15 pm - 1.15 pm Lunch Break 1.15 pm - 3.00 pm Evolving Security Architecture in the Region Discussion Moderated by Co-Chairs 3.00 pm - 3.30 pm Break 3.30 pm - 4.15 pm Domestic Politics and Bilateral Opportunities Discussion Moderated by Co-Chairs 4.15 pm - 5.00 pm Closing Session: Summary of Key Points and Next Steps Closing Remarks: Mr Ajay Gondane Indian High Commissioner to Australia Ms Harinder Sidhu Australian High Commissioner to India Discussion Moderated by Co-Chairs 5.00 pm End of Formal Dialogue Discussions 2018 Monday 22 January 2018: Closing Reception 7.30 – 9.00 pm Hosted by: The Hon Harinder Sidhu Residence of the High Australian High Commissioner to India Commissioner of Australia to India 1/50 G Shantipath Chanakyapuri New Delhi 110021 Discussion Papers Discussion Papers Knowledge: Increasing Engagement with India’s Higher Education, and Skill Development Sectors Higher education represents a key Indian nationals comprise the second point of engagement for Australian and largest international higher education Indian higher education institutions, student group in Australia totalling both in terms of international mobility, nearly 45,000 in 2016. This market is research collaborations, and joint of particular interest, as Australia’s PhD programs. There is potential export education sector seeks to reduce for Australian VET providers and reliance on China. India’s large youth enterprises operating in India to population are ambitious. India’s collaborate with Indian partners outbound higher education student to pursue the Skill India agenda. population is projected to continue Opportunities appear greatest in niche growing despite the in-country industry sectors outside the current system burgeoning in recent years. capacity of India’s established skills Opportunities for higher education system. in India are constrained by persistent unmet demand and fierce competition Growing engagement with India’s for admission to elite institutions. The higher education system emergence of India’s elite independent Indian higher education institutions school sector, with large numbers of are increasingly engaged in graduates strongly motivated to study internationalisation efforts. They are abroad, will also contribute to outward partnering with universities in the student mobility. United Kingdom, North America, In addition to Australia’s longstanding Europe, Japan, Korea and China. While international education and diaspora legislation enabling foreign providers ties with India, Australian universities to establish stand-alone universities are turning to India for academic in India stalled, the Government of partnerships. This trend mirrors a India’s support for higher education global shift from a preoccupation with internationalisation has been international education to broader demonstrated in the new National forms of bilateral engagement. The DO NOT PRINT Education Policy. Support is evident number of Australian universities for faculty exchanges, transnational partnering with Indian higher education involving Indian partners, education institutions is growing faster and collaborative research ventures, than any other country. Australian for example in engineering and university’s Indian partners are technology, medicine, agriculture, law, concentrated in Delhi, the western and management. state of Maharashtra, and the southern is urgent. Coupled with India’s states of Tamil Nadu and Karnataka aspirations to operate as the global that accommodate India’s largest cities. skills capital, foreign governments and VET providers have actively been Skill development: opportunities encouraged to engage with this agenda. for engagement The Government of India is actively In recent years, the Government of pursuing foreign partners, with the India has adopted a more co-ordinated NSDC prioritising international approach to skill development under collaborations in targeted industry the Ministry of Skill Development sectors (i.e., aviation, ports, mining, and Entrepreneurship (MSDE) smart cities, agriculture). Multinational and associated authorities such as agencies are actively engaged (e.g., the National Skill Development World Bank, Asian Development Corporation (NSDC). At state/union Bank, UNESCO, European Union). territory level, there have also been Companies from the United States, endeavours to adopt a more co- Japan, South Korea, China, Germany ordinated approach. Unlike the high and France with operations in India unmet demand that characterises are dominant players in establishing India’s higher education system, skill development partnerships with there are major challenges for India’s Indian institutions in engineering and skills system in recruiting students technology, healthcare/life science and and securing skilled graduates’ food processing sectors. This includes employment. These challenges relate foreign companies such as Ford, Toyota, to social factors which constrain Bosch, Samsung and Huawei. Unlike student participation and progression, other Asian markets, there are few poor labour market outcomes, a large examples of foreign VET providers with informal sector, and a wage structure a strong presence in India. The United that frequently fails to adequately Kingdom’s Manipal City and Guilds reward skilled workers. represents a leading notable exception. The Skill India campaign has Australian VET providers have witnessed a consolidation of India’s made