Why trade diversification matters and how India can help

Trade diversification is now more than a smart move. It’s a must.

One major opportunity for Aussie businesses is the bilateral trade between Australia and India, also known as the Australia-India trade corridor.

Here’s how the Commonwealth Bank of Australia (CommBank) is helping Australian businesses make the most of it.

Why diversification matters

Elizabeth Huxley, General Manager, Working Capital at CommBank, says trade diversification helps businesses stay strong in uncertain times.

“Trade diversification is a crucial safeguard that empowers Australian businesses to thrive in an ever-changing economic and international market,” she says.

By spreading risk across multiple markets, partners and products, exporters can build stability. They are less vulnerable to disruptions and better positioned to seize new opportunities.

Three smart ways to diversify

For exporters looking to build a more resilient business model, Huxley suggests a three-pronged approach:

Look beyond one market

Avoid relying too heavily on a single country or region. Geopolitical risks and economic shifts can quickly impact stability.

Strengthen your supply chain

Seek multiple, reliable sources to mitigate risks, and avoid concentrating your resources with a single supplier.

Work with experts in-market

Engage with trade agencies like Austrade, local advisors, and trusted financial partners. They can help you navigate unfamiliar systems and build stronger operations.

India: open for Australian trade

India is one of the world’s fastest-growing economies. Australian businesses are being offered enormous trade opportunities from its exponential growth.

The Australia-India Economic Cooperation and Trade Agreement (ECTA) is opening doors across industries, from food and education to technology and energy.

In addition, India’s rise as a global manufacturing hub under the Make in India initiative aligns with Australia’s interest in diversifying its trade partnerships.

Aussie businesses should act now

The ECTA has already eliminated tariffs on many goods between the two countries, offering significant opportunities to grow bilateral trade.

Negotiations toward a Comprehensive Economic Cooperation Agreement (CECA) are also underway, aiming to expand the ECTA’s scope.

India and the UK have just signed a similar trade deal and India is in high demand now more than ever.

Success in India takes more than enthusiasm

Australian businesses also need the right knowledge, connections and financial backing to take advantage of the Australia-India trade corridor. CommBank’s collaboration with ICICI Bank gives exporters just that.

The collaboration between two of the region’s leading financial institutions provides businesses on both sides of the corridor with expertise and support to foster solid trade relationships.

Under the Memorandum of Understanding (MOU), both banks will collaborate to introduce corporate and business customers to opportunities in the other’s home market. They will provide banking services for cross-border trade, assist customers migrating between Australia and India, and enhance cross-border payment solutions.

How CommBank can help

CommBank supports business customers in India and Australia by providing comprehensive banking services and guidance on cross-border trade opportunities.

“This will help businesses navigate the complexities of international trade and seize new opportunities for growth,” says Huxley.

“Our collaboration facilitates introductions for business customers interested in investing or setting up operations in the other bank's home country. This will create a seamless experience for businesses looking to expand their footprint and explore new markets.”

Export success in India

India presents enormous opportunity, but also complexity. For businesses ready to enter the trade corridor, the right approach makes all the difference.

Here are CommBank’s top tips to get started:

Talk to advisors

Seek independent, professional advice on your international trade plans. Experts can help you understand risks, regulations and market entry strategies.

Understand the market

Research the Indian market thoroughly. Get to know its consumer behaviours, regional dynamics and regulatory landscape. This will help you tailor your approach.

Leverage technology

Use digital tools to streamline your operations. Platforms that help manage logistics, track shipments and process payments can boost efficiency and visibility.

Build strong relationships

Invest in long-term partnerships with Indian suppliers, buyers or distributors. Trust and collaboration are key to success in this market.

Supporting exporters, long-term

CommBank’s mission is to support businesses at every stage, from launch to global expansion.

“We understand the needs of Australian businesses and provide unwavering support at every stage of their journey,” says Huxley.

“We provide relationship managers and trade & working capital specialists who understand our clients’ businesses, supported by targeted products and expert guidance to help them achieve their trade ambitions.”

Celebrating innovation and global ambition in exports

CommBank has been proud to sponsor the Australian Export Awards for 36 years.

The Bank is the 2025 gold sponsor of the Agribusiness, Food and Beverages award category – reflecting a commitment to Australian farmers and local manufacturing.

The partnership celebrates innovation, resilience and global ambition – traits that define all successful exporters.

Disclaimer: This information is general in nature and for educational purposes only. Seek professional advice if necessary. T&C's apply.