New Delhi: India and Australia on Thursday signed a nuclear energy agreement that will pave the way for uranium supplies from Australia to India, while Australia's largest pension fund, AustralianSuper, announced an additional AU$500 million investment in the National Investment and Infrastructure Fund (NIIF), underscoring deepening strategic and economic ties between the two countries.
Following bilateral talks with his Australian counterpart, Anthony Albanese, Prime Minister Narendra Modi, who is on a three-day visit to Australia, said the nuclear energy agreement would facilitate uranium supplies from Australia to India and support the country's clean energy ambitions. He also said the two countries had agreed to expedite negotiations on a Comprehensive Economic Cooperation Agreement (CECA) and move quickly towards concluding a Bilateral Investment Treaty.
The NIIF investment, announced alongside the Australia-India Annual Leaders' Summit in Melbourne, will take AustralianSuper's total exposure to India across infrastructure, equities and private markets to AU$3.3 billion. The fresh commitment follows its AU$240 million investment in NIIF in 2019, which the fund described as one of its best-performing infrastructure bets.
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The uranium pact allows for the supply of uranium from Australia to India, supporting India's clean energy goals and nuclear power generation ambitions.
AustralianSuper's investment reflects growing confidence in India's economic growth and reform, aiming to enhance long-term capital returns through infrastructure development.
The ECTA aids in advancing bilateral energy cooperation, recognizing both countries' roles in trading energy resources, thus enhancing the energy trade between them.
Previously, political and legal hurdles regarding the peaceful use of uranium limited export possibilities, despite a nuclear cooperation pact established in 2014.
Yes, AustralianSuper's commitment is a strong endorsement of India's growing investment potential and showcases the opportunities for safe, stable, and sustainable growth.
Australian pension fund AustralianSuper's AU$500 million additional investment in NIIF will take its overall exposure to India across asset classes to AU$3.3 billion, as both countries stepped up efforts to deepen economic and investment ties.
The announcement was made on Thursday alongside the Australia-India Annual Leaders' Summit in Melbourne, where AustralianSuper chief executive Paul Schroder is participating.
The fresh commitment follows the fund's initial AU$240 million investment in NIIF in 2019, which AustralianSuper described as one of its best-performing infrastructure investments. The fund currently has around AU$2.8 billion invested in India.
Welcoming the announcement, Modi said in a post on X, “India welcomes the AU$500 million investment from AustralianSuper, announced by their Chief Executive, Mr. Paul Schroder this morning in Melbourne. This is yet another glimpse of the global confidence in India's growth and reform trajectory. It also reflects the immense opportunities that our dynamic economy offers global investors.”
In an official statement issued by the Prime Minister's Office after bilateral talks with his Australian counterpart, Modi said both countries had decided to accelerate negotiations for a broader trade pact and strengthen investment cooperation.
“India's share of Incremental GDP is a little more than half of China's, put China's economy has very limited safe & flexible opportunities for foreign investors. Long term investment, like pension funds, will therefore increasingly flow into India from developed countries. FTAs, BITs & CEPA will accelerate this process,” said Arvind Virmani, economist and founder chairman of EGROW foundation.
"The Economic Cooperation and Trade Agreement signed in 2022 has steadily expanded our trade and investment horizons. We have now decided to expedite work on the Comprehensive Economic Cooperation Agreement (CECA), which will be balanced, ambitious, and a win-win for both countries. We will also move forward rapidly on the Bilateral Investment Treaty," Modi said.
India's merchandise exports to Australia fell 15.1% to $7.28 billion in FY26 from $8.58 billion a year earlier. Total bilateral merchandise trade declined to $21.09 billion in FY26 from $24.10 billion in FY25, while India's trade deficit with Australia stood at about $6.52 billion.
On cooperation in clean energy, Modi said, "Our Renewable Energy Partnership is shaping our efforts in clean energy and climate action. We are placing special emphasis on investment, technology transfer, and industry-to-industry collaboration," Modi said.
Highlighting progress under the PM Surya Ghar Yojana, Modi said India and Australia had jointly established a Rooftop Solar Training Academy in Gujarat to build capacity among women and youth.
Meanwhile, AustralianSuper chief investment officer Shaun Manuell said the fund's experience with NIIF had strengthened its conviction about India. "Our experience with NIIF demonstrates what can be achieved when long-term capital is combined with visionary policy, trusted institutions and strong partnerships," Manuell said.
He said India's strong economic growth, expanding middle class and improving investment environment continued to make it an attractive destination for long-term capital.
"AustralianSuper is making a second investment in the NIIF because those fundamental strengths are still there and we see the potential for more returns for members."
Established in 2015, NIIF is India's sovereign-backed investment platform that mobilises long-term domestic and overseas capital for infrastructure and other strategic sectors.
The latest commitment comes just days after the Centre approved an additional ₹30,000 crore capital infusion into NIIF, doubling the government's total commitment to ₹60,000 crore. The additional funding will support Infrastructure Fund II, the successor to NIIF's flagship infrastructure fund,
"Thank you @PMOIndia for championing greater investments in India and strengthening the #NIIF. Under PM @narendramodi ji leadership, India continues to be the fastest growing economy," said finance minister Nirmala Sitharaman on X.
Australia and India have agreed to elevate their bilateral cooperation by launching the Australia-India Partnership on Cyber, Critical Technologies and Supply Chains (PACTS), which will replace the 2020 Framework Arrangement on Cyber and Cyber Enabled Critical Technology Cooperation, according to a statement issued by the Prime Minister's Office on Thursday.
Under the new framework, the two countries will deepen collaboration between Australian and Indian research institutes to help protect semiconductor supply chains and facilitate co-development and research to strengthen their capabilities.
The two sides will also collaborate on developing secure critical minerals supply chains, including through coordinated investment, regulatory alignment, and recycling and recovery initiatives, the statement said.
“India's share of incremental GDP is a little more than half of China's, put China's economy has very limited safe & flexible opportunities for foreign investors. Long term investment, like pension funds, will therefore increasingly flow into India from developed countries. FTAs, BITs & CEPA will accelerate this process,”said Arvind Virmani, Indian economist and founder chairman of EGROW foundation.
