Last month, Peter Varghese, a former Australian trade secretary and high commissioner to India, submitted a report to his government calling for greater economic ties with India as a means to reduce Australia’s dependence on China. A substantial percentage of Australian exports go to just two markets, Varghese noted—China and Japan, both “with ageing populations”. Politically, too, he wrote, there is value in India’s “willingness to work with the US, Japan and Australia in ways which capture the growing strategic convergence of these four democracies”. This is interpreted by China, and most analysts, to mean that greater closeness with India is for Australia and, particularly, the United States, a means to contain Chinese influence. But India’s trade with Australia is still nascent. A free trade agreement between both countries has…