What India’s rising star means to Australia
Australia’s recent economic growth owes a great deal to the contribution of Indian migrants, one of the largest migrant groups, and our relationship with India, one of the world’s largest economies.
Going forward, both will be important for our post COVID-19 recovery and future prosperity.
The property industry is well-aware of the impact of Indian migration. For most of the last decade robust population growth, driven by skilled immigration especially from India, has been one of the defining trends in the Australian real estate market.There are many reasons why Indian migrants have been attracted to Australia. These include employment and career development (especially for skilled migrants), lifestyle and liveability considerations, education opportunities (especially in the higher education sector), similar time zones and common institutions (legal systems and parliamentary democracy).
Indian-born migrants have been a major source of demand in greenfield land markets and have played an important role in reshaping the market.
The impact of India and Indian-born migrants on the local real estate market is part of a broader global trend that began some decades ago as the country emerged from its outdated, largely centrally-planned and inward-looking socialist economic model, to one that is more open, internationalised and focused on innovation.
When this process of transformation began few could have foreseen where India would be today. Where India might be in the coming decades is an increasingly important question.
The answer is of vital importance at a range of levels for Australia as a whole and, specifically, the Australian property market.
While most political leaders are focused on managing the immediate and short-term health and economic implications of the COVID-19 pandemic, this focus will need to move quickly once again to the long-term and maximising opportunities in the global economy, especially those afforded to us by the growth of developing nations.
In a post-COVID-19 world, we will also need to ensure we minimise our economic and other risks. This includes, for example, diversifying our trading relationships in the sourcing and supply of critical health and related equipment, medicines and pharmaceuticals.
Given Australia’s strategic partnership with India, this key relationship seems to offer a recipe for future development.