Critical Minerals Anchor India-Australia Trade Ties Ahead of Modi Visit

Critical minerals are set to become a primary pillar of economic cooperation between India and Australia under the India-Australia Economic Cooperation and Trade Agreement (ECTA). According to a report by Rubix Data Sciences Pvt. Ltd. released ahead of a visit by Narendra Modi to Australia, Australia possesses 21 of the 49 minerals India identifies as critical, including cobalt, lithium, and rare earth elements.

These resources are essential for India's strategic ambitions in electric vehicle manufacturing, semiconductor production, and renewable energy. While bilateral trade currently relies heavily on Australian coal and Indian refined petroleum, both nations are diversifying their cooperation into advanced manufacturing and defense to create a more resilient partnership.

The economic relationship is showing signs of convergence, with the trade deficit narrowing to USD 6.5 billion in FY2026. Furthermore, the partnership is expanding its trade liberalisation efforts, as all Indian exports are scheduled to receive duty-free access to the Australian market starting in January 2026. This move is intended to complement the strategic focus on minerals by lowering barriers for a wider range of goods and services.