India has entered advanced discussions with Australia to facilitate the construction of one million homes, in what is being projected as a $500 billion economic opportunity. Union Commerce and Industry Minister Piyush Goyal confirmed that negotiations are ongoing, with the additional involvement of the UAE being sought for financial support.
The initiative, if finalised, will mark one of the largest international housing collaborations India has undertaken. The plan also includes deploying Indian workers to Australia for training and upskilling in local construction standards, enabling them to contribute directly to the project.
Australia has been facing a severe mismatch between housing demand and supply, a factor blamed for spiraling property prices. The shortage of affordable homes emerged as one of the central issues in the recently concluded national elections. By leveraging India’s skilled workforce, the project aims to accelerate housing delivery while creating global employment opportunities for Indians.
According to Minister Goyal, Indian workers will not only undergo specialised training in Australia but will also play a hands-on role in building residences that align with the country’s regulations and construction norms.
The financial scale of the proposed project has pushed New Delhi to seek external investment support. The UAE, which has been a prominent investor in Indian real estate, has been approached to form a funding partnership.
During a recent meeting with UAE Trade Minister Thani bin Ahmed Al Zeyoudi, Goyal formally presented India’s proposal for cooperation. He stressed that the housing programme represents a “massive opportunity” for the Gulf nation to participate in a high-value project with global impact.
The housing deal is unfolding against the backdrop of India’s broader trade diplomacy. Goyal noted that India and Australia are simultaneously working on finalising a free trade agreement, aimed at boosting bilateral economic ties. Canberra has also extended diplomatic support to New Delhi in recent months, particularly after the US imposed 50% tariffs on Indian exports.
Despite these trade challenges, India remains confident of surpassing its FY25 export target of $825 billion, with Mr. Goyal underlining the country’s resolve to diversify its markets.
In addition to Australia, India is progressing on multiple trade agreements. A deal with Oman is expected within two weeks, followed by one with New Zealand in two months. Negotiations with the European Union, a $17 trillion economy, are also advancing, with Commerce Secretary Sunil Barthwal holding meetings in Brussels this week.
Talks are ongoing with Qatar, while Chile and Peru have expressed strong interest in fast-tracking agreements. South Africa and several Eastern European nations are also keen to forge deeper economic partnerships with India.
Minister Goyal emphasised that the housing initiative with Australia, backed by UAE financing, reflects India’s growing role as a global economic partner. With labour mobility, infrastructure expertise, and strong trade linkages, India is positioning itself as a vital contributor to solving international challenges.
“If we do not seize such opportunities, we will only have ourselves to blame,” Minister Goyal remarked during an industry interaction, underlining the urgency of turning negotiations into concrete outcomes.
As talks continue, the million-home project could emerge as a pillar of India’s international cooperation strategy, highlighting its commitment to driving domestic growth and global development.
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