Australia Economic Strategy Report Australia Economic
Strategy Report
Chapter 1

Macroeconomic overview

Victoria is the second largest state economy in Australia with a share of about 23% (valued at AUD 424 billion, USD 284 billion) in the overall GDP of Australia in 2018.37 The state houses about 6.6 million people, which constitutes 26% of the total population. Victoria has earned the reputation of a cosmopolitan state globally, housing most number of international offices of global companies compared to any other state in Australia.40 Melbourne, Geelong, Ballarat and Bendigo have emerged as regional centres in the state.

The state has identified 12 sectors as priority sectors namely construction technologies; creative industries; defence technologies; digital technologies; international education; food & fibre; medical technologies and pharmaceuticals; professional services; retail, transport distribution and logistics; space technologies and visitor economy.

The state of Victoria is home to the largest Indian population amongst all states in Australia. The state government has developed a structured approach towards building its relationship with India through the “Victoria India Strategy”. The approach undertaken to build this relationship is broadly structured as follows41:

  1. Strengthening and celebrating personal connections, which would include: establishing, supporting and driving cultural precincts, cultural and creative industries, a pilot Victorian Young Leaders to India program resulting in an exchange of cultural knowledge between the two countries and deepening its understanding within communities and schools.
  2. Creating new ways to work together, which would look at setting up Premier’s Victoria India Relationship Dialogue, hosting the Australia India Youth Dialogue in Melbourne and appointing business ambassadors to build on the Victoria-India relationship.
  3. Building knowledge and understanding of India across the Government and Industry involving the delivery of India Gateway cultural competency program, supporting the Australia India Institute in Melbourne, enabling Government and industry programs to achieve an enduring relationship between the state and India.
  4. Investing towards building Victorian industry connect to India by strengthening Victoria’s in-market referral services to partners and fulfil targeted trade missions between Victoria and India.
  5. Promotion and implementation of engagement across priority sectors: education, health, liveable cities and places, sport, etc.

The state has also entered into sister state arrangements with Indian states such as Maharashtra, Karnataka, Kerala, Telangana, Andhra Pradesh, Tamil Nadu and Delhi NCR.

40 Victoria’s Trade Statement, Department of Economic Development, Jobs, Transport and Resources, 2017
41 Victoria’s India Strategy: Our Shared Future, Victoria State Government

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