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Possibilities endless for promoting Indo-Australian business ties: Rudd | Placing emphasis on the central role that business plays in elevating bilateral partnerships between two countries, visiting Australian Prime Minister Kevin Rudd on Thursday told captains of Indian industry at the Taj Mahal Hotel here that both Australia and India share common commercial interests. Business partnerships, he said demonstrate
the power of entrepreneurialism, and added that when commercial vision is joined
with complementary capacity, the possibilities are endless. "The same is true
of the Australian-Indian economic relationship as a whole. In the past 18 months,
businessmen and women around the world have together faced the worst financial
collapse in three quarters of a century. We all know the figures - the global
economy is forecast to contract by 1.1 per cent in 2009 - the first contraction
since IMF records began," he said. Describing the current global recession as
the deepest in three-quarters of a century, Rudd said that the one startling fact
that had become apparent:, was that "our economies are more interconnected and
interdependent now than ever before." "Our coordinated response to the global
economic crisis - driven by the G20 in which Australia and India are active- has
highlighted the benefits of cooperation. It reminds us that global solutions to
crises are through collective determination and action rather than insular policies.
It has provided the strongest signal yet that the global economy has entered a
new - though fragile - phase of recovery," he added. Admitting that there was
tentative talk of recovery, he said total recovery was still a long way off, and
would be both slow and complex. "Global economic activity, driven by the strong
performance of Asian economies such as India and China, still remains below pre-crisis
levels. Private consumption and investment are needed to sustain this recovery.
This requires a smooth transition from government-supported demand to private-led
demand. We also need to unwind the global imbalances that led us into this crisis.
My message to the global community is simple: we're all in this together, and
we're all in this for the long haul," Rudd said. Revealing what Australia has
to offer, Rudd listed the following: · Strong fundamentals; · A stable, prosperous
economy; and · An ongoing economic policy reform agenda. Like India, the Australian
economy has weathered the global recession better than most: · our economy grew
in the June quarter at 0.6 per cent, making it the fastest-growing advanced economy
in the past year and the only advanced economy to have reported positive through-the-year
growth to June 2009; and · while every Major Advanced Economy has fallen into
recession, Australia so far has not. · But still, as the slight rise in our unemployment
rate to 5.8 per cent today underlines, Australia is by no means out of the woods,
yet - as we still face such a fundamentally uncertain global economic outlook.
Australia is a significant economy. We are the 14th largest economy in the world.
By market exchange rates, Australia is the fourth largest economy in Asia - after
Japan, China and India, and the fourteenth largest in the world. We have the second
lowest unemployment rate when compared with the Major Advanced Economies. Our
public finances are sound, with Standard and Poor's reaffirming our AAA sovereign
rating. According to the OECD, Australia is projected to have a lower deficit
in 2010 than any of the Major Advanced Economies. We also have the lowest debt
of all the Major Advanced Economies, with government net debt projected to peak
at 10 per cent of GDP in 2013. Australia is globally acknowledged for our resilient
banking system and strong prudential and regulatory regimes: · Of the world's
nine remaining AA plus rated banks, four are Australian; and · The percentage
of nonperforming bank-to-bank loans in Australia is among the lowest in the world.
The strength of our banking system reflects a strong set of regulatory arrangements
and a smart industry model. Most significantly, Australia prides itself as a good
place to do business. In its 2009 survey, IMD rated Australia as one of the four
most resilient economies globally, and the strongest in our region. The World
Bank ranked Australia as one of the most business-friendly economies in the world,
offering a business environment that is both stable and flexible. And our corporate
governance environment has also been ranked first by - based on measures like:
· The transparency of our business and regulatory culture; · The power and rights
our shareholders enjoy; and · The interaction between Government and business.
As far as India was concerned, Rudd said the strategic weight and structure of
its economy have seen it withstand the impacts of the global economic crisis better
than most. "India has managed an impressive six per cent growth at a time when
few other economies have managed any growth at all. India has truly emerged as
a central pillar of regional and global economic strength and significance," he
said. "India is already Australia's fastest growing major two-way trading partner
- trade in goods was worth nearly 18 billion dollars in 2008-09. One important
part of our relationship is of course the large number of Indian students who
come to Australia - nearly one-fifth of the half a million students who come to
our country. These students represent the future of Indian and Australian business
- and those who study together, stick together. And the Australian Government
is committed to doing all that is physically responsible to ensure all international
students in Australia have a safe and rewarding experience during their time as
welcome guests in our nation. Indian students are welcome guests in our country
and we have an obligation to extend the hand of friendship and support to all
our Indian visitors," he said. India is a dynamic and diversified economy with
an acknowledged infrastructure deficit and challenges in meeting the growing food
and energy needs of its burgeoning population. Australia is a resource-rich country
with a relatively small domestic market but a number of compelling comparative
advantages, particularly in energy and resources. India is itself richly endowed
with many mineral and energy resources. And so there is significant potential
for reciprocal investment in our resource sectors," he added. Rudd also said that
he was of the firm belief that a comprehensive, commercially meaningful FTA between
Australia and India could deliver substantial new market access for exporters
and investors, and open up job opportunities in both countries. He said that the
designation of the G-20 as the premier forum for global economic cooperation was
an historic occasion for India and Australia. G-20 leaders recognised that a strong,
stable and balanced global economy relies on: 1. Strengthened financial regulation;
2. Representative, legitimate and well-resourced international financial institutions;
3. An open trading system; 4. Strong labour markets; and 5. Support for those
most in need. He said that he was pleased that Australia and India are working
together to address these five key challenges. "Governments have a responsibility
in unlocking this economic potential, and this is one of the key challenges I
will be discussing with Prime Minister Singh. But that's only part of the story.
Business leaders have an important role in recognising commercial opportunities
and pursuing them - whether they are in Mumbai or Melbourne. I'm delighted that
our Trade and Commerce Ministers have agreed to establish a CEO forum to bring
together the business elites of our two countries to discuss opportunities and
impediments to greater economic cooperation. I look forward to reading their recommendations in 2010 on what governments can do," he concluded. |
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