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India's growing economy and ambitions to become an electric vehicle manufacturing powerhouse could be supported by Australian critical minerals.

Australian trade negotiator Frances Lisson said there was no expectation India's demand for fossil fuels would dramatically increase in a new trade between the countries, in light of the transition to renewable energy.

But there was opportunity to increase exports of critical minerals exports as India sought to "bulk" manufacture electric vehicles, Ms Lisson said.

"We're hoping with tariffs reducing and as investment flows that there will be more of those exports to India," she told a parliamentary inquiry on Thursday.

An interim trade deal was signed earlier this year, with negotiations for the full Australia-India agreement expected to be finalised by Christmas.

Labor MP and committee chair Josh Wilson said India was a hugely significant nation and economy that couldn't be underestimated.

Australian Chamber of Commerce and Industry trade expert Chris Barnes said his organisation fully backed the India deal.

"This agreement is the start of a new and important phase in Australia's relationship with one of our most significant and economic partners, and will see Australian business benefit from globalised markets and supply chains," he said.

"It will deliver greater market access for Australian exporters and more certainty for investors in one of the world's fastest growing economies."

Benjamin Moxham from the Australian Council of Trade Unions told the committee the agreement opened a national conversation about improved pathways to permanent residency.

He said there needed to be "important safeguards" to ensure Indian workers were not exploited in Australia.

"This agreement was negotiated in secret without input from unions and civil society," he said.





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