Wednesday 13 / May / 2026
Sydney: The Australian Government will commit $25.3 million in the 2026-27 Budget to deepen business relations with India, as the Albanese govt seeks to strengthen economic, strategic and maritime ties with one of the world’s fastest-growing major economies.
The funding forms part of the next phase of Australia’s Comprehensive Strategic Partnership with India and is aimed at helping Australian businesses tap into India’s expanding market, seed new areas of cooperation through Maitri grants, and strengthen maritime security in the Indian Ocean.
The government said the investment builds on “unprecedented progress” in the Australia-India relationship across strategic, economic and people-to-people fields.
India has become an increasingly central part of Australia’s regional strategy, with both countries working more closely on trade, education, clean energy, technology, defence and Indian Ocean security.
The Budget measure is expected to support stronger business links at a time when Australian companies are looking to diversify markets and build deeper commercial ties across the Indo-Pacific.
Foreign Minister Penny Wong said the Budget reflected Australia’s focus on regional stability and long-term partnerships.
“At a time of global uncertainty, Australia will remain a reliable partner our region can count on,” Senator Wong said.
“We are building the region we want, one that is peaceful, stable and prosperous, where sovereignty is respected, and countries can determine their own futures.”
The Indian funding comes as the government warns that the global development and economic landscape is facing major pressure from aid cuts, trade disruption and energy insecurity linked to conflict in the Middle East.
The government said these pressures risk undermining development gains and increasing instability across the Indo-Pacific.
Senator Wong said Australia’s investments in diplomacy, development and regional partnerships were tied directly to national security.
“Our investments in diplomacy, development and regional partnerships strengthen both Australia’s national security and the resilience of our region,” she said.
The Budget maintains Australia’s total Official Development Assistance, but reprioritises some multilateral funding so more support is directed to the Indo-Pacific.
Funding will be reduced to the United Nations Development Programme, the Global Partnership for Education, UNAIDS and the Pandemic Fund.
The government said the changes would ensure more than 75 cents in every development dollar is directed to Australia’s region.
While the Pacific remains a major focus, the India allocation signals Canberra’s intent to treat New Delhi as a long-term economic and strategic partner rather than only a diplomatic priority.
The $25.3 million India package will also support cooperation through Maitri grants, a platform designed to build stronger links between Australian and Indian institutions, businesses and communities.
The funding will sit alongside broader regional measures, including $33.2 million to strengthen ties with Indonesia following the Australia-Indonesia Treaty on Common Security, known as the Jakarta Treaty 2026.
The government will also invest $60.5 million to sustain Australia’s global consular services and support Smartraveller travel advice for Australians overseas.
International Development Minister Anne Aly said the government’s approach was focused on building stronger and safer communities across the region.
“Australia’s humanitarian program opens up opportunities and supports communities to be stronger, safer and more resilient,” Dr Aly said.
“At a time of growing global uncertainty, Australia is continuing to invest in the people and relationships that help create a more stable and secure region for everyone.”
Pacific Island Affairs Minister Pat Conroy said Australia was also stepping up support for Pacific nations facing climate, economic and security pressures.
“Pacific countries are facing growing pressures from climate change, economic disruption and global instability, and Australia is stepping up as a trusted partner,” Mr Conroy said.
“We are prioritising targeted investments that back Pacific priorities, strengthen local resilience and support long-term development.”
The Budget also extends Ukraine’s duty-free access to Australia for a further two years until July 2028 and includes $87 million to support the DFAT portfolio and other government entities in implementing Australia’s nuclear-powered submarine program.
But the India funding is one of the clearest signals in the foreign affairs Budget that the Albanese Government wants Australian business to move faster in one of the region’s most important growth markets.
The government said the package would help expand commercial links, create new areas of cooperation and support maritime security in the Indian Ocean, where both Australia and India have growing strategic interests.
