Modi and Abbott: the “Can-do” Leaders Commit to Free Trade Deal

Modi

India's Prime Minister Narendra Modi carried the gravity of a popular celebrity during his Australian visit, as his momentous speech in Canberra's national parliament was preceded by a 15,000-strong audience in Sydney the night before. Held at Olympic Park, the Sydney Morning Herald's Tom Allard explained the Indian leader's popularity by using the term "transformative" to describe the manner in which Modi is perceived by Indians living in Australia. Fan t-shirts depicting Modi's face were even worn at the event.

However, Modi had his prime minister's hat firmly in place, as he also signed 24 agreements with the Australian government on Monday, which was followed by a further five this morning in the period before his parliamentary address. The agreements covered areas such as tourism, drug trafficking and social security.

By the time Modi stood before Australia's political representatives, the level of anticipation was steep, as he is the first Indian leader to visit Australia in 28 years-Rajiv Gandhi preceded Modi in 1986, when he sat down with then-prime minister Bob Hawke. This month's "breaking of the drought" appears to be timely, as while Abbott has called India "potentially the world's largest market," the two-way trade between the two nations was worth a mere US$13 billion last year, which represents one-tenth of Australia's trade relationship with China.

Both Abbott and Opposition Leader Bill Shorten fulfilled their roles as welcoming national politicians, with both offering gracious words. Abbott revealed that he first visited India as a student backpacker, and credited the journey for his ability to find strength in the face of adversity. In a deft example of diplomacy, the Australian prime minister also reminded the room that India and Australia not only share "an ocean, a language, a heritage," but also a national day-January 26. Abbott was followed by Shorten, who spoke of intellectual leadership, poetry and adventurers, after first greeting Modi with "Namaste."

Although Modi had explained at Olympic Park that he is concerned with "smaller people," his address was defined by lofty aspirations. After the Indian leader delivered a greeting on behalf of 1.25 billion people, he identified Australia as "the heart of the Asia Pacific"  and a "vital partner" in "every area" of India's future. He then presented India as "the answer to your [Australia] search for new economic opportunities," followed by a humorous reference to cricket as a shared passion that can further bond the two country's future endeavors.

In conclusion, Abbott referred to himself and Modi as the "can-do Prime Ministers" who will "make it happen," which bodes well for their commitment to sign off on a free trade deal by the end of 2015. Modi is the third national leader to address the Australian parliament over the last week-after the UK's David Cameron and China's Xi Jinping-and Abbott will be pleased that he can now add a second historic free trade agreement to his list within such a brief time frame.