Dichotomous Australian Foreign Policy- Historically, a key problem with Australia’s bilateral relationships has been the misalignment of Australia’s economic and political-security interests. While Australia is reliant on the US for its defence and security through the Australia-New Zealand-US treaty, its economy depends on China, which accounts for a huge share in bilateral trade and investment.
- Challenges of Indian Economy- India is too complicated for its growth story to be linear. Canberra has skepticism about India’s economic progress which is constrained by the political compromises demanded by a diverse democratic federation, held back by thinly resourced institutions, burdened by a interfering bureaucracy, dented by corruption and shaped by a political tradition which puts much greater faith in government intervention than the efficiency of markets.
- Trade implications for India- India and Australia are “too far apart” to conclude the bilateral Comprehensive Economic Cooperation Agreement (CECA) in the near term.
- Perception of Indo pacific– There is no coherent Indo pacific strategy as countries do not have one definitive vision for the region. It is largely seen as global construct to arrest China’s rise.
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