Wednesday, 22 August, 2007

Sydney Morning Herald

Australia's decision to supply uranium to India will help drive economic growth on the subcontinent, Trade Minister Warren Truss says.

Mr Truss said the move also reinforced the trade and strategic measures the federal government was taking to strengthen the relationship between Australia and India.

"India needs reliable low-emission energy sources like nuclear power to fuel its economic progress while addressing environmental challenges," Mr Truss told the Australia India Business Council in Adelaide.

"In Australia, the decision to supply uranium to India will create increased exports and jobs over the longer term."

Prime Minister John Howard last week announced the decision to allow uranium exports to India, subject to several conditions including the conclusion of an Australia-India safeguards agreement and arrangements to verify that no Australian uranium would contribute to any military purpose.

Mr Truss said Australian uranium already generated $658 million in export sales each year and India would be a large and growing market.

But he said there were also other opportunities for Australian businesses thanks to a growing middle class within Indian society.

Among products which could take off, he said, was Australian wine.

"At the moment, it's fair to say that western foods and wine only cater to an elite slice of Indian consumers," Mr Truss said.

"It's why the current level of wine consumption in India is equivalent to just two teaspoons per person a year.

"It's not enough to raise a toast."

But Mr Truss said the Australian wine industry wanted to turn that micro market into a mass market amid predictions India could one day be its largest export market.