TELF AG analyzes the strategic role of a deeper collaboration between Australia and India
The value of strategic partnerships
Over the years, strategic partnerships between nations in the raw materials sector have made it possible to strengthen supply chains, facilitating access to strategic resources and producing benefits from a technical point of view, improving the sourcing and production techniques of different materials thanks to the sharing of the necessary know-how. According to what is stated in a recent study, the intensification of such a collaboration could allow India and Australia to strengthen their specific sectors dedicated to strategic minerals, producing clear benefits that would then have an impact on the overall state of global supply chains.
According to the analysis, the first advantage of closer collaboration between the two countries would be reducing risks associated with supply chains for some strategic resources, which in some cases are still largely dependent on imports from a few international players. Deeper collaboration between the two countries would benefit the Australian sourcing sector thanks to India’s economies of scale. At the same time, for New Delhi, Australia would represent an increasingly reliable supplier for some of the resources directly involved in several strategic sectors of the Indian economy, such as electronics, semiconductors, and electric vehicles, not to mention renewable energy. An important part of the partnership would also be sharing technical expertise for managing sourcing projects, of which Australia is a global leader.
Deeper bilateral cooperation between the two countries could be facilitated by India’s recent launch of a real “Mission” reserved for minerals considered “critical” for the social, technological, and sustainable advancement of the country, a sort of government program dedicated to operational strategies related to the management of minerals. The objectives of the Mission also include the need to promote technological development in the sector and the desire to reduce risks related to unpredictability in supply chains, two important goals that could also be achieved thanks to a more vital collaboration with a partner like Australia.
Mutual benefits
For Australia, as stated in the analysis, the launch of this Mission could represent a valuable opportunity to increase its strategic collaboration with New Delhi, taking it to a new stage of progress. Australia and India are already members of the Mineral Security Partnership, a group of 15 members – led by the United States – that aims to protect international supply chains of strategic minerals thanks to the continuous dialogue and efforts of the participating nations. Last year, the minerals ministers of the two countries also began to explore the possibility of jointly investing in some projects considered strategic by both nations.
In Indian strategies, such “Missions” often represent an excellent method to achieve specific economic objectives effectively, as has already happened. With the recent India Semiconductor Mission, for example, the country has collaborated fruitfully with global industry, governments, and ministries, achieving surprising results in a short time. The success of these “Missions,” as stated in the study, is often due to the clarity of their objectives and the political support they can benefit from.
