India: A Strategic Partner in NSW’s Global Outlook
With over $6.8 billion in two-way trade and expanding links across education, tourism, and investment, India is a critical partner in NSW’s economic future. Minerals and fuels have traditionally been NSW’s leading merchandise export to India, while education leads the state’s services exports. India is NSW’s third largest source of international students, with 44,000 Indian students studying in NSW in 2024. Visitor numbers from India have rebounded strongly post-pandemic, and NSW’s vibrant Indian diaspora of more than 209,000 people continue to enrich the state’s social and economic fabric.
The Australia–India Economic Cooperation and Trade Agreement (AIECTA) is accelerating this growth, with 85% of goods now tariff-free. Since the agreement’s entry into force, Australian exports of wine, dairy, and meat to India have surged by 59%. NSW universities are leveraging this momentum by establishing transnational education (TNE) campuses and partnerships in India, while vocational and online programs support India’s skilling priorities.
India’s decarbonisation agenda is driving demand for NSW’s Mining Equipment, Technology and Services (METS) capabilities, and NSW’s expertise in smart cities complements India’s rapid urbanisation, where infrastructure accounts for 40% of industrial output. Indian technology leaders such as TCS, Infosys, Wipro, HCLTech, Tech Mahindra, and Indian Immunologicals have invested in NSW, tapping into strengths in AI, machine learning, data science, and health, and partnering with NSW universities on advanced R&D.
India is NSW’s 13th largest trading partner, but with the world’s fastest-growing major economy, projected to become the third largest by 2030, the opportunity is far greater. Guided by the NSW Trade and Investment Strategy 2035, India is not just a market but a strategic ally. The partnership spans agrifood, education, digital technologies, life sciences, METS, and sustainability, sectors identified as critical to NSW’s future growth.
NSW’s Core Strengths
NSW accounts for one-third of Australia’s GDP and anchors its diversified economy. Sydney is a global finance hub, while regional NSW underpins advanced agriculture, mining, and energy. The NSW Trade and Investment Strategy 2035 positions the state as a proactive global partner, targeting fast-growing markets and emphasising six priority sectors: agrifood; defence and aerospace; life sciences and healthcare; digital technologies; international education; and METS. These sectors reflect global growth trends, NSW’s comparative advantages, and the government’s missions of Housing, Net Zero & Energy Transition, and Local Manufacturing.
By diversifying the state’s economic base, these sectors mitigate risks from over-reliance on traditional industries, drive high-value job creation, and foster innovation. They also align directly with India’s growth trajectory, creating opportunities for collaboration across four key themes.
Where the Bilateral Opportunities Lie
Agrifood Demand for NSW food and beverage products among India’s growing middle class is increasing, creating new opportunities for exporters equipped with India business literacy. High-quality, sustainable agri-products and advanced farming technologies can support India’s food security and supply chain modernisation. Indian food processors can partner with NSW producers to co-create value-added products and strengthen bilateral supply chains.
Education and Skills Exchange NSW universities are expanding transnational education (TNE) through campuses in India, while online programs and vocational training partnerships address India’s skilling priorities. Indian edtech firms and investors can tap into NSW’s global education ecosystem to develop dual-delivery models.
Technology and Innovation NSW can partner with Indian conglomerates to support India’s green transition through mining technology and critical minerals. Fast-growing Indian unicorns and soonicorns can use NSW as a launchpad into the Asia-Pacific, benefitting from Sydney’s innovation districts and Renewable Energy Zones (REZs).
Urbanisation and Sustainability NSW’s strengths in urban infrastructure and sustainable living complement India’s rapid urbanisation. Indian energy companies can invest in NSW’s large-scale renewable projects and green hydrogen pilots, while Indian construction and infrastructure firms can participate in NSW’s multi-billion-dollar transport and housing programs.
Looking Ahead: A Transformative Partnership
The NSW Trade and Investment Strategy 2035 underscores that India is more than a trading partner, it is a strategic ally. As India expands its global footprint and NSW doubles down on innovation-led growth, the two economies stand on the cusp of a transformative partnership. Success will require patient capital, joint ventures, and government-backed facilitation. For Indian investors, NSW offers stability, advanced ecosystems, and access to the wider Asia-Pacific. Investment NSW’s India office is positioned to support NSW companies as they navigate this dynamic landscape.
