An Analysis of Trade and Foreign Direct Investment between India and Australia

Existing theoretical and analytical investigation shave acknowledged India's rising influence to the Australian economy, even though revealed that FDI and trade patterns have largely remained unexplored. Therefore, this paper is an attempt towards analyzing trade and foreign direct investment (FDI) trends between India and Australia.Secondary data has been used for analyzing over the period of pastten years from 2012to2022. According to findings, both FDI and trade have been expanding over the previous ten years. Further, results indicating a trade deficit for India since exports were erratically less than imports. Nevertheless, the relative trends produce a positive picture since export growth has outpaced import growth eight out of ten occasions. In addition, India clearly prefers to encourage FDI inflows instead of making outward investments in Australia. The relative trends indicating inbound FDI has outpaced outbound FDI seven out of ten occasions. Lastly, it's not just India that is going to be benefitted but it will have a reciprocal effect. Australia's vulnerability to global risk will be minimized if India would be one of its top 3 export destinations, and can generate greater two-way investment, to diversify and protect from uncertainty.