Friday 26 / June / 2026
Australian Prime Minister Anthony Albanese has identified stronger ties with India as a central pillar of Australia’s long-term economic and strategic vision, arguing that the country must actively shape global transformations rather than simply react to them.
Speaking at the Committee for Economic Development of Australia (CEDA) State of the Nation Conference in Canberra, Albanese said Australia’s prosperity through 2050 would depend on how it responds to major global trends, including the clean energy transition, artificial intelligence, evolving supply chains and deeper regional cooperation.
“The Australia of 2050 will be defined by how we respond to this changing world,” Albanese said.
The Prime Minister outlined a strategy focused on innovation, advanced manufacturing, energy security and stronger international partnerships, describing these as essential to building a more resilient and competitive economy.
Among Australia’s regional priorities, Albanese highlighted the importance of stabilising relations with China, increasing engagement with Southeast Asia and strengthening ties with India.
“Stabilising our relationship with China, deepening our investment in South East Asia, elevating our ties with India,” he said while discussing Australia’s future role in the Indo-Pacific.
Australia and India have significantly expanded cooperation in recent years through their Comprehensive Strategic Partnership, with growing collaboration across trade, critical minerals, technology, education and defence sectors.
Albanese said Australia must leverage its natural resources, skilled workforce and research capabilities to develop industries that meet future global demand, particularly in clean energy and advanced manufacturing.
“We can build on our global leadership in clean energy and use it to power a new generation of Australian manufacturing,” he said.
The Prime Minister also stressed the importance of embracing artificial intelligence while ensuring it supports economic growth and social stability.
“The debate can’t be, is AI good or bad. You can’t stop progress. You’ve got to shape it or else it’ll shape us,” he said.
Albanese acknowledged Australia’s strong record in innovation but argued the country must do more to commercialise research and develop domestic manufacturing capabilities. He called for closer collaboration between universities, researchers and industry to translate ideas into economic opportunities.
The Prime Minister said the government’s agenda to improve productivity includes reducing regulatory barriers, strengthening workforce skills, supporting research and development, and encouraging greater private investment.
Defending the government’s approach to housing, taxation and energy reform, Albanese said leadership required addressing long-term challenges rather than avoiding difficult decisions.
“I’m in government to make a difference, not to just occupy the space,” he said.
Pointing to investments in renewable energy, battery storage and emerging technologies, Albanese expressed confidence that Australia could create new industries and jobs while successfully navigating the economic transitions ahead.
