India and Australia should explore possibilities of enhancing trade and investments in the financial sector – mainly banking and insurance, said Mr Peter N. Varghese, Australian High Commissioner in India.
According to him, policy restrictions such as the ceiling of foreign direct investment in India's insurance sector to 26 per cent were a hindrance to the growth in trade.
“Although Australian companies have entered into joint ventures in the insurance sector, policy restrictions like the ceiling of FDI in the sector is hindering the growth,” Mr Varghese said at an interactive session organised by the MCC Chamber of Commerce and Industry.
Banking
According to data available on the Reserve Bank of India Web site two Australian banks – Commonwealth Bank of Australia and Australia and New Zealand Banking Group Ltd – have branches in India, while two others – National Bank Australia and Westpac Banking Corporation have representative offices as on June 30, 2011.
“The four Australian banks which have marked their presence in India would focus primarily on trade and investment activities, rather than retail banking,” Mr Varghese said.
According to Mr Varghese, the Westpac Banking Corporation has sought RBI's permission to upgrade its representative office into a full fledged branch.
Bilateral Trade
The bilateral trade between the two countries – which stands at about $22 billion at present – is expected to double by 2015, Mr Varghese said. India's exports to Australia were at $ 2 billion, while its imports from Australia stood at $16 billion in 2010-11.