.gif)
Australian mineral exporters are likely to continue to benefit as India's economy grows in importance, the Reserve Bank has suggested reports the AAP.
The central bank says the Indian economy has gradually strengthened over the past two decades and the Asian nation should continue to improve in the years ahead.
"The Indian economy looks likely to continue to expand at a relative rapid pace in coming decades and to become an increasingly important part of the world economy," the RBA said in its quarterly statement on monetary policy released today.
The central bank said the rise in India's prominence in the global economy has been a boost to the Australian economy.
"Indian demand for Australia's exports has risen sharply, with particularly rapid growth over the past decade," the RBA said in its statement.
"This has seen India's share of Australia's share of Australia's total exports increase to around 6.5 per cent - a four-fold increase in less than a decade."
India was Australia's fourth largest export market in the second half of 2009, official data showed.
The RBA said coal exports to India has risen strongly over the past decade and accounted for 40 per cent of total goods exports to India in 2008/9.
"Coal exports are likely to continue to grow over the next few years, as significant planned expansions in India's steel making capacity come online," the bank said.
"Liquefied natural gas (LNG) is another likely source of future growth in Australia's good exports to India.
"LNG production capacity in Australia and import capacity in India are both projected to increase significantly and long-term supply contracts have recently been agreed for the sale of Australian-produced LNG to Indian buyers."
