Union Minister for Commerce and Industry Piyush Goyal announced that India is in "deep negotiations" with Australia to construct 1 million homes, a project valued at USD 500 billion. Speaking in Mumbai, Goyal highlighted the initiative as a significant opportunity to address Australia’s housing demand-supply mismatch, which has driven high home prices and was a key issue in the country’s recent national elections.
While details such as project locations, Canberra’s financial commitment, and India’s specific role remain undisclosed, Goyal emphasized that the initiative would involve training Indian workers in Australia to meet local construction standards.
To fund this ambitious venture, Goyal revealed that India has approached the United Arab Emirates (UAE), a major investor in Indian real estate, for financial collaboration. During a meeting with a UAE trade delegation led by Trade Minister Thani bin Ahmed Al Zeyoudi, Goyal proposed a partnership to support the project’s financing. “I talked to Thani to see if we can do a partnership to help us fund this massive opportunity,” he stated, underscoring the strategic importance of global partnerships.
Goyal stressed the need for India to seize such international opportunities, warning that failure to act would be a missed chance for economic growth. “It’s for us to grasp these openings. If we miss out, we will have only ourselves to blame,” he said at an event organized by the Confederation of Indian Industry (CII).
The housing project aligns with ongoing negotiations for a free trade agreement (FTA) between India and Australia, bolstered by Canberra’s support amid India’s challenges with 50% US tariffs. Goyal noted that India is actively engaging with the US to resolve these trade issues while projecting export growth beyond USD 825 billion in FY25 despite the tariffs.
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Beyond the Australia housing initiative, Goyal outlined progress in India’s global trade negotiations. He aims to finalize a balanced FTA with Oman within two weeks, followed by an agreement with New Zealand in two months and potentially the European Union (EU) by year-end. Union Commerce Secretary Sunil Barthwal will meet EU officials in Brussels on August 31 and September 1, 2025, to advance talks, with EU trade representatives scheduled to visit India in September.
Goyal also plans to finalize terms for a trade agreement with Qatar during an upcoming visit and noted interest from Chile, Peru, South Africa, and Eastern European nations in forging trade pacts with India.
The proposed housing project and trade negotiations reflect India’s growing global economic influence, leveraging its skilled workforce and strategic partnerships to address international challenges like Australia’s housing crisis while expanding trade opportunities worldwide.
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