New Delhi, Nov. 26: India can attract higher Australian investments following the government’s efforts to make the regulatory environment conducive to FDI inflow, Australian foreign secretary-designate Peter Varghese said.
India’s direct investment in Australia in 2011 stood at around $11 billion compared with Australia’s $4.3 billion .
Analysts said top Aussie miners such as Rio Tinto, Xstrata, Newcrest are awaiting clarity on investments in mining, coal and financial services.
Similarly, the National Australian Bank and Macquarie Bank are looking for relaxations in rules on foreign banks opening shop here.
Retailers such as Woolsworths and Wesfarmers are waiting to see how the opening up of the retail market plays out before committing any investment.
India is the fifth-largest trading partner of Australia, and the fourth-largest export market with trade expected to double to Aus $40 billion by 2015.
India imports coal, gold and copper, while local companies have invested in the resource-rich country’s coal mines to secure supplies for power plants.
“There is an increased complementarity in the economic relationship between India and Australia, which is only expected to grow. The biggest growth prospect in the immediate future is in financial services followed by agricultural business and infrastructure,” Varghese said.