Melbourne | The Nepalese Voice

India has announced it is in advanced discussions with Australia on a proposal to help build one million new homes, a project that could be worth an estimated US$500 billion (around A$760 billion) if it proceeds. An announcement has come following Indian PM Narendra Modi's visit to Australia.

Speaking at an event in Mumbai on Sunday, India's Minister for Commerce and Industry, Piyush Goyal, said negotiations with his Australian counterpart are underway to explore one of the largest housing construction partnerships ever proposed between the two countries.

"We are in deep negotiations with Australia to create one million homes. This represents at least a US$500 billion opportunity," Goyal said.

While the minister did not reveal where the homes would be built, how the project would be funded, or Australia's exact role, he said India is proposing to contribute by supplying a skilled workforce trained to Australian building standards.

According to Goyal, Indian workers could receive specialised training in Australia before joining the country's construction sector to help address ongoing labour shortages and accelerate housing development.

UAE Could Help Finance the Project

Goyal also revealed that India has approached the United Arab Emirates (UAE) about helping finance the massive housing initiative.

He said discussions have already taken place with UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, seeking a partnership to support funding for the proposed development.

Addressing Australia's Housing Crisis

Australia has been facing a significant housing shortage, with demand continuing to outpace supply in many major cities. Rising property prices, increasing rents and limited housing availability were key issues during the country's recent federal election.

If realised, the proposal could become one of Australia's largest housing construction programs, while also strengthening economic cooperation between Australia and India.

Broader Trade Cooperation

The housing proposal comes as Australia and India continue negotiations on a broader free trade agreement aimed at strengthening economic ties.

Goyal also said India is progressing trade negotiations with several other countries, including Oman, New Zealand, the European Union, Qatar, Chile, Peru and South Africa, as it seeks to expand export markets and deepen international partnerships.

Although the proposed Australian housing project remains in the negotiation stage, it highlights the growing strategic relationship between Australia and India and could have lasting implications for Australia's housing sector, workforce and migrant communities if it moves forward.