At the same time, there is an upside too. Rudd confronted John Howard over climate change, which has become a serious concern in Australia. He dismissed Howard’s idea of making India and China comply with emission cuts and argued for Australia ratifying the Kyoto Protocol first, rather than putting the onus on developing economies. While setting a target to cut greenhouse emission by 60 per cent by 2050, Rudd’s manifesto set Renewable Energy Target of 20 per cent by 2020. He has also proposed to invest AUD $500 million in a renewable energy fund to boost research in renewables, a huge sector that stands to gain further through collaboration with India. The Indo-Australia Joint Working Group earlier has looked into various aspects of bilateral energy cooperation, including promotion of Australia’s expertise in renewable energy. Australia has committed to exchanging information on renewable energy sector to facilitate the identification of possible proposals for joint R&D with India.

The new Labour regime is also aware of the much improved India-Australia relationship, which had deteriorated after the 1998 Indian nuclear tests. The recent Muhammad Haneef controversy also did some damage to the otherwise cordial relationship between the two countries. Australia would look to build on the rapprochement under way since Howard’s visit in July 2000. Both sides have signed a Trade and Economic Framework to strengthen commercial relations in energy, mining, tourism, biotechnology, infrastructure, education, entertainment, textile and agriculture. India is the sixth largest export destination for Australian goods, making it the eighth largest investor in India. The Indian presence in Australia has also increased in the last few years. As per the 2006 Australian census, Hindi along with Mandarin has become the fastest growing language in proportional terms, doubling since 1996. Now there are around 1,47,000 Indian-born people living in Australia, compared to over 77,000 in 1996.

... contd.