New Delhi [India], July 7 (ANI): India and Australia are poised to deepen their economic partnership beyond traditional trade, with critical minerals expected to emerge as the next major pillar of bilateral cooperation under the India-Australia Economic Cooperation and Trade Agreement (ECTA), according to a report by Rubix Data Sciences released ahead of Prime Minister Narendra Modi's visit to Australia this week.

The report said the visit comes at a time when the two countries are strengthening collaboration in trade, investment, clean energy and strategic supply chains. It noted that the India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into force in 2022, has significantly improved market access for businesses in both countries, with all Indian exports receiving duty-free access to the Australian market from January 2026.

According to the report, India's trade deficit with Australia narrowed sharply to USD 6.5 billion in FY2026, as imports from Australia declined faster than the growth in exports, reflecting a gradual rebalancing of bilateral trade.

'What most conversations about India-Australia trade miss is the minerals dependency running through it,' Rubix Data Sciences President Tushar Bhaskar said.

'Australia holds 21 of the 49 minerals India has flagged as critical, at a time when India's clean energy and semiconductor ambitions need exactly that kind of supply security. We feel that is a bigger long-term story than the trade deficit numbers,' he added.

The report said Australia's reserves of critical minerals such as lithium, cobalt and rare earth elements position it as an important partner for India's plans to expand electric vehicle manufacturing, renewable energy capacity and semiconductor production. As both countries seek to build resilient supply chains, cooperation in these sectors is expected to gain further momentum.

Energy remains the main part of trade between India and Australia. India mainly exports refined petroleum products to Australia, while Australia mainly exports coal to India. However, their trade is now expanding into new areas such as defence, advanced manufacturing, and critical technologies.

Rubix expects stronger collaboration under ECTA to create new opportunities for businesses in both countries as Australia expands investments in critical minerals, hydrogen and clean energy, while India's growing manufacturing sector drives demand for secure and diversified supply chains. (ANI)