India, Australia Deepen Defence Industry Collaboration to Build Secure Indo-Pacific

In a landmark step toward strengthening strategic and industrial cooperation, Raksha Mantri Shri Rajnath Singh addressed the inaugural India-Australia Defence Industry Business Round Table in Sydney, marking a significant milestone in bilateral defence relations. The forum brought together senior officials, diplomats, defence industry leaders, innovators, and policy experts from both nations to discuss opportunities for co-development, co-production, and technology sharing across critical sectors.

The event, jointly organised by the Ministry of Defence (Government of India), the Australian Department of Defence, the Newland Global Group, and the Australia-India Business Council, underlined the shared commitment to advancing industrial and technological partnerships within the framework of the India-Australia Comprehensive Strategic Partnership (CSP), established in 2020.

Strengthening a Comprehensive Strategic Partnership

In his keynote address, Raksha Mantri Rajnath Singh emphasised that the India-Australia relationship has evolved from being transactional to transformational, driven by shared values and a collective vision for a secure Indo-Pacific.

“Under the banner of our Comprehensive Strategic Partnership, established in 2020, we stand at a pivotal juncture to re-position our defence relations — not merely as partners, but as co-creators of a secure and prosperous Indo-Pacific,” he stated.

He described the Round Table as “a declaration of intent” to make India and Australia natural allies in business, industry, and innovation, fostering mutual growth and stability.

Building on Shared Democratic Foundations

Highlighting the growing convergence between New Delhi and Canberra, Shri Rajnath Singh recalled a series of high-level bilateral engagements — the India-Australia Summit (November 2024), the 2+2 Ministerial Dialogue (October 2024), and the visit of the Australian Deputy Prime Minister and Defence Minister to India (June 2025) — which have reinforced strategic alignment and institutional cooperation.

“Both India and Australia are part of the Commonwealth of Nations. Our shared history is built on democracy, diversity, liberty, and similar governance structures,” he noted.

He outlined three pillars defining the partnership:

1. Government-to-government collaboration,

2. People-to-people connections, and

3. Convergence of business interests, particularly in the defence industrial sector.

While India’s robust diaspora in Australia and growing Australian engagement in India have strengthened societal bonds, the defence industrial partnership, he noted, remains ripe for expansion through joint R&D, innovation, and co-production.

India’s Defence Manufacturing and Export Growth

Elaborating on India’s industrial achievements, Shri Rajnath Singh highlighted the country’s emergence as a global manufacturing and export hub.

• India is now the fourth-largest economy and the fastest-growing large economy globally.

• Defence production reached an all-time high of ₹1.51 lakh crore (USD 18 billion) in FY 2024–25, an 18% year-on-year increase.

• Defence exports climbed to ₹23,622 crore (USD 2.76 billion), with Indian firms exporting to nearly 100 countries.

“These achievements reflect India’s growing industrial resilience, policy reforms, and the success of Make in India and Aatmanirbhar Bharat initiatives,” he said, adding that defence exports have increased tenfold over the past decade.

Complementary Strengths: A Partnership of Equals

The Raksha Mantri highlighted the complementarity between India and Australia — a dynamic that can fuel the next phase of defence innovation.

“Australia excels in niche technologies such as quantum systems, autonomous underwater vehicles, and advanced maritime surveillance, while India brings manufacturing scale, software excellence, and indigenous capabilities in shipbuilding, missiles, and space technology,” he noted.

He emphasised that this collaboration could lead to joint solutions for the Indo-Pacific region, particularly in maritime security, cyber defence, and next-generation platforms.

Reforms to Boost Innovation and Foreign Investment

Underscoring India’s liberalised and investor-friendly policies, Shri Rajnath Singh highlighted several key government measures:

• FDI up to 74% through the automatic route, and beyond with approval for high-tech collaborations.

• Simplified compliance mechanisms and policy interventions to promote ease of doing business.

• Production Linked Incentive (PLI) schemes supporting indigenous innovation and manufacturing.

• Free-of-cost technology transfer through the Defence Research and Development Organisation (DRDO) to encourage private-sector participation.

“To accelerate defence R&D in the private sector, we have opened avenues for free-of-cost technology transfer through DRDO,” he said, adding that collaborations with Australia’s Defence Science & Technology Group are progressing in quantum computing, artificial intelligence, cybersecurity, and information warfare.

Emerging Areas of Industrial Collaboration

The Raksha Mantri invited Australian companies to participate in co-development and co-production projects in India, particularly in:

• Propulsion and flight simulation technologies,

• Autonomous underwater vehicles,

• Advanced materials, and

• Maritime platforms and subsystems.

He cited ongoing industrial partnerships as proof of concept:

• Indo-MIM Pvt. Ltd. and Thales Australia,

• Tata Advanced Systems and W&E Platt Pty Ltd,

• Munitions India Ltd. and Aqusport.

“These partnerships illustrate how our ecosystems complement each other and demonstrate how businesses can drive our governments’ strategic intent,” he said.

The Minister also welcomed Australia’s proposal for a reciprocal provision of defence articles and services MoU, noting that Canberra’s move to classify India as a Top Tier Partner will remove regulatory barriers and facilitate technology sharing and joint development.

Maritime and Shipbuilding Cooperation

Highlighting India’s robust shipbuilding and maintenance capabilities, Shri Rajnath Singh said Indian shipyards could offer refit, mid-life upgrades, and MRO (Maintenance, Repair and Overhaul) services for Royal Australian Navy vessels and those under the Pacific Maritime Security Program.

“Our shipyards have a proven track record in building and maintaining a wide range of naval platforms. With our growing ecosystem of private innovators and start-ups, India stands ready to be a trusted partner in Australia’s maritime projects,” he said.

He further proposed joint R&D in green shipbuilding, autonomous maritime systems, and sustainable propulsion technologies as part of efforts to build a resilient and self-reliant Indo-Pacific.

A Shared Future for the Indo-Pacific

Concluding his address, Shri Rajnath Singh urged the Australian business community to view India not only as a market but as a strategic partner in innovation, technology, and global supply chains.

“I invite Australian companies to invest, collaborate, and innovate with India. Together, we can build advanced platforms, develop cutting-edge technologies, and make our industries strategic enablers of peace and stability in the Indo-Pacific,” he said.

The Round Table was attended by Australia’s Assistant Minister for Defence, Mr Peter Khalil, along with senior government officials, diplomats, and representatives from defence research institutions and industries from both sides.

The discussions underscored a shared resolve to enhance industrial interoperability, technology co-development, and sustainable supply chains, reaffirming that India and Australia are poised to shape a stronger, more secure Indo-Pacific future together.