India–Australia Labour Mobility: A New Strategic Chapter in Bilateral Trade?

The next phase of the India–Australia economic partnership could move beyond traditional trade issues and place labour mobility at the centre of negotiations. Australia’s High Commissioner to India, Philip Green, recently indicated that future discussions under the expanded trade framework could focus on making it easier for Indian professionals to live and work in Australia, alongside further progress on mutual recognition of qualifications. 

This reflects a broader shift in how countries are approaching trade agreements. Market access is no longer only about goods, tariffs and exports. Increasingly, it is also about people: how skilled professionals move, how qualifications are recognised, and how companies can access the talent they need across borders.

The current Australia–India Economic Cooperation and Trade Agreement, known as ECTA, entered into force in December 2022. It has already created new opportunities in goods, services and education, while both countries are now negotiating a broader Comprehensive Economic Cooperation Agreement, or CECA, designed to build on the existing framework. According to India’s Ministry of Commerce & Industry, bilateral trade reached USD 24.1 billion in 2024–25, while all Indian exports became eligible for zero-duty access to Australia from 1 January 2026. 

For global mobility teams, the most important part of this discussion is not only the trade volume. It is the possible creation of a more structured talent corridor between India and Australia.

Australia already faces labour shortages in several strategic sectors. Jobs and Skills Australia reported that 29% of assessed occupations were in national shortage in 2025, with persistent gaps particularly visible among professionals, technicians and trades workers, including roles linked to health, education, engineering, science, construction and the clean energy transition. At the same time, India represents one of the world’s largest pools of young, highly educated talent, especially in technology, engineering, finance, renewable energy and digital services.

The mobility component is not entirely new. Under the Migration and Mobility Partnership Arrangement signed in 2023, Australia introduced the MATES scheme, a temporary pathway allowing Indian graduates and early-career professionals to live and work in Australia for up to two years. The scheme targets sectors such as renewable energy, mining, engineering, ICT, artificial intelligence, fintech and agri-tech, with up to 3,000 places per year. Importantly, MATES does not require employer sponsorship and allows participants to bring dependants, who may also have work rights in Australia. 

However, the current scale remains limited compared with the potential demand. A dedicated labour-mobility chapter in the next agreement could therefore become a significant development, especially if it improves qualification recognition, reduces administrative barriers, or creates clearer pathways for skilled professionals and employers.

Education is another key part of this mobility ecosystem. DFAT reported that, as of August 2025, 137,703 Indian students were studying in Australia, representing around 17% of Australia’s international student cohort. Education exports to India were valued at AUD 9.3 billion in FY2024–25. This student population already forms a strong bridge between education, employment and long-term skilled migration.

The demographic link is also becoming stronger. In 2025, people born in India became the largest overseas-born group in Australia for the first time on record, reaching an estimated 971,020 residents. Overall, 32% of Australia’s population was born overseas, underlining the central role of migration in the country’s economic and social model. 

For companies, the implications are practical. A more structured India–Australia mobility framework could help reduce deployment lead times, improve access to specialised skills, and support regional workforce planning. It could also create new opportunities for Indian professionals, Australian employers, universities and service providers involved in relocation, immigration, housing, onboarding and family support.

Still, this should not be read as an open-door policy. Labour mobility remains politically sensitive in Australia, especially in a context of housing pressure, infrastructure constraints and broader debates around migration levels. On the trade side, Australia is also seeking improved tariff access in areas such as agriculture, while India will need to balance any concessions with domestic economic and political considerations. 

The key takeaway is clear: India–Australia relations are becoming increasingly people-driven. If the next trade chapter includes stronger labour-mobility provisions, it could mark a shift from transactional trade cooperation to a more integrated skills, education and talent partnership.

For HR leaders, mobility teams and international employers, this is a development to watch closely. The future of trade in the Indo-Pacific will not only depend on goods crossing borders, but also on how effectively skilled people can move, settle and contribute across markets.