Sydney, Nov 7 : Amid the ongoing global financial crisis, the growing demand for resources and mining expertise in India has given a ray of hope for the Aussies mining firms, as more than 50 Australian mining companies are participating at India's largest mining industry event - the International Mining and Machinery Exhibition (IMME 2008) in Kolkata this week.
In the last 12 months, Australian companies like Thiess Leighton India and India Resources are learnt to have won significant contracts to provide contract mining services.
In the words of the Australian Trade Commission (Austrade), India's hunger for resources and mining expertise could help Australian firms cushion the blow from the global financial crisis.
Austrade chief economist Tim Harcourt said Australia's growing exports to emerging markets such as India would alleviate the credit crunch effect in Australia. "According to the recent DHL survey of Australian export businesses, our exporters regarded India as the No.2 destination for commodities after China, even in the early days of the global credit crunch. The low exchange rate together with Australian capability will enhance our international competitiveness," the Sydney Morning Herald (SMH) quoted Harcourt as saying.
The paper also quoted Austrade senior trade commissioner in New Delhi Peter Linford as saying that India's growing need for energy and resources gave Australian companies scope to increase their exports.
Linford said India was better insulated from the global financial crisis than other countries such as China. "It's a much more domestically driven economy, relying less on exports as a percentage of the GDP (gross domestic product)," Linford said and added that India required more efficient mines to sustain this growth, which had led to demand for Australian mining expertise.
"We also expect to see increased investment opportunities for Australian companies in India, and most definitely an increased interest from India in investment into Australian resources reserves and assets," added Linford.