Hoping to leverage the opportunity presented by the 'Make in India' campaign, Australia is optimistic of cashing in the opportunities in the mining sector and is considering technology partnerships, an Australian official said Tuesday.
"After Narendra Modi came to power, his Australian counterpart Tony Abbott led a delegation to India. We were one of the first countries to explore new business possibilities, and with the Modi government in power, we are considering India as a major destination for Australian mining firms," said Tom Calder, trade commissioner at the Australian Trade Commission.
Calder said 350 Australian companies will next year enter India and look for joint-venture collaborations.
"They (Australian companies) will look for India partners to leverage the opportunity presented by the 'Make in India' campaign," he said.
Under the present circumstances, technological collaborations are the most likely with Indian firms and Australia is exploring different sets of opportunities with public sector undertakings (PSUs), enterprises and the small and midsize business (SMB) segment.
"We would love to partner with firms like Coal India and other government-owned companies and are in talks with them," he said.
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Asked about technology transfer as a result of the projected joint ventures, Calder said it will depend on the "partner's capabilities and their technical know-how".
He said India was becoming the destination for manufacturing as operating costs were scaling up in China.
However, he said that a sooner adoption of the Free Trade Agreement (FTA) with India will boost trade between the two countries which has grown from $5.1 billion in 2003 to $15.2 billion in 2013.
To boost the investment scenario in the mining segment, the union government has introduced changes to the tax structure and has come up with various incentives to boost the mining segment.
Also, if necessary, the union government may make further amendments in the Mines and Minerals (Development and Regulation) Act, 1957 to encourage investment in the mining sector and promote sustainable mining practices.
Presently, coal, gold and mining related equipment and technology comprise some of the major components in the India-Australian trade.
BHP Billiton, Rio Tinto, Indian Resources Limited, Australian Indian Resources and NSL Consolidated are some the Australian majors operating in the Indian mining segment.