Australian exports to India have more than trebled since the Asian giant liberalised its trade policies in 1991, according to a report in one of Australia's oldest broadsheets.

The Age reports that Indian awareness of and access to trade finance tools such as letters of credit (L/Cs) is one reason for Australia's success over the last five years in the fast-growing Indian market.

Trade boost

There has been a sharp rise in Australian merchandise exports to India to more than 6 billion Australian dollars (A$6 billion) a year, thus ending a very long period of time during which trade growth in both directions barely matched inflation.

Australian exports have been stimulated by demand for the country's rich and varied stock of minerals but according to the newspaper around 1,500 companies outside the natural resources sector now export to India too.

Reasons

The Age quotes reasons given by chief executive of Ausmelt, Paul Abbott, for burgeoning trade between the two countries.

"Doing business in India is more straightforward than in China," he says. "They are more attuned to international trade norms, like L/Cs. All those banking facilities and functions you would like to have in contracts are certainly available in India. In other countries, they are not always there," he concludes.

Trade visit

Ausmelt, which provides metals processing technology has built a smelter for India's largest copper producer and another for a lead producer.

Trade relations with India were a key part of Australian Prime Minister John Howard's recent visit to India.

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