MUMBAI (CommodityOnline.com) -- The gold market is glittering in India and analysts have predicted that consumption of the yellow metal will rise to 900 tonnes this year - and it is Australia that is laughing all the way to the bank, thanks to the gold boom in India.
Latest reports say India has emerged as the fourth-largest merchandise gold export market for Australia in 2006-2007. Gold exports comprise nearly half of all merchandise exports to India from Australia, says a report from the Australia India Business Council (AIBC).
It said in 2006-2007, India was Australia's largest market for gold, second-largest market for coal and copper ore and third-largest market for wool. Australia has also agreed to allow the export of uranium to India, subject to strict conditions.
Australian exports to India rose 37% in 2006-07 as against 22% in 2005-06. Last year, merchandise exports from Australia to India were worth A$10.1 billion, up A$2.7 billion.
According to Australia's Trade Minister Warren Truss, the booming export of his country to India is largely driven by gold.
He said the major commodity movements from Australia to India during 2006-2007 were: gold (including gold re-exported after industrial processing) amounting to A$4.7 billion, up $1.8 billion (63%); copper ores amounting to A$1.0 billion, up A$165 million (19%); and vegetables exports worth A$150 million, up A$99 million (191%).
"The success of Australia's long-term engagement with India will rely heavily on the commercial links built up by Australian businesses," Truss pointed out.
