Over the years ahead, the Indian economy, which also contains more than 20 per cent of the world’s population within its borders, is likely to become increasingly important to Australia. After India grew at a disappointing pace in the 1960s and 1970s, growth has picked up over recent decades, averaging 7 per cent per year over the 2000s (Graph 5).
Supporting technological innovation, and its efficient diffusion throughout the economy is key to obtaining sustained increases in productivity in the longer term, and to safeguarding the living standards of future generations, as well as the sustainability of our countries’ social security systems and public finances.