2016 DEFENCE WHITE PAPER

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CHAPTER TWO: STRATEGIC OUTLOOK
of competition among major powers, with China, India and the United
States all increasing their levels of military activity in this region.
SECTION ONE STRATEGY
2.93 India is an increasingly important economic and security partner for
Australia and we share key interests in regional stability and order.
India’s modernisation of its armed forces and participation in the
regional security architecture, particularly through the Indian Ocean
Naval Symposium and Indian Ocean Rim Association, supports Australia
and India’s shared interests in Indian Ocean security. India is also
increasing its security partnerships, including with Australia, the United
States, Japan, Indonesia and Vietnam.
2.94 In addition to having a stronger role in the Indo-Pacific region, India
is also likely to become a more active and influential global power,
supported by its economic growth. India could be the world’s
third-largest economy before 2030. India’s relationships with other
major powers including China, the United States and Japan will help
shape the global security environment out to 2035.
2.95 Over the next two decades, Pakistan is likely to continue to face a
range of security challenges as it struggles with an internal insurgency.
Following the historic elections in 2013, it will be important that
Pakistan continues to strengthen its democratic institutions. The
institutional strength of Pakistan’s armed forces will continue to play an
important role in the Pakistani state.
2.96 The India-Pakistan relationship remains one of the region’s major points
of tension. The fact that both India and Pakistan are nuclear powers
underscores the continuing need for mutual dialogue and restraint.
Tensions between India and Pakistan, potentially fuelled by terrorist
activities, could have a wider regional and possibly global impact that
would affect Australia’s security.