Australia will recognize a Palestinian state, Prime Minister Albanese says

Pro-Palestine activists protest at the entrance to the Australian International Airshow in Avalon on March 26, 2025. (AFP)
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Updated 11 August 2025
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Australia will recognize a Palestinian state, Prime Minister Albanese says

  • France and Canada last month said it planned to recognize a Palestinian state
  • Britain has said it would follow suit unless Israel addresses the humanitarian crisis in Palestine and reaches a ceasefire

WELLINGTON: Australia will recognize a Palestinian state, Prime Minister Anthony Albanese said Monday, joining the leaders of France, Britain and Canada in signaling they would do so.
His remarks followed weeks of urging from within his Cabinet and from many in Australia to recognize a Palestinian state and amid growing criticism from officials in his government over suffering in Gaza. Australia’s government has also criticized plans announced in recent days by Israeli leader Benjamin Netanyahu for a sweeping new military offensive in Gaza.
Albanese told reporters after a Cabinet meeting Monday that Australia’s decision to recognize a Palestinian state will be formalized at the United Nations General Assembly in September. The acknowledgement was “predicated on commitments Australia has received from the Palestinian Authority,” Albanese said.
Those commitments included no role for Hamas in a Palestinian government, demilitarization of Gaza and the holding of elections, he said.
“A two-state solution is humanity’s best hope to break the cycle of violence in the Middle East and to bring an end to the conflict, suffering and starvation in Gaza,” Albanese said.
Ahead of Albanese’s announcement, Netanyahu on Sunday criticized Australia and other European countries that have moved to recognize a Palestinian state.
“To have European countries and Australia march into that rabbit hole ... this canard, is disappointing and I think it’s actually shameful,” the Israeli leader said.
Nearly 150 of the 193 members of the United Nations have already recognized Palestinian statehood, most of them decades ago. The United States and other Western powers have held off, saying Palestinian statehood should be part of a final agreement resolving the decades-old Middle East conflict.
Recognition announcements are largely symbolic and are rejected by Israel.
A two-state solution would see a state of Palestine created alongside Israel in most or all of the occupied West Bank, the war-ravaged Gaza Strip and annexed east Jerusalem, territories Israel seized in the 1967 Mideast war that the Palestinians want for their state.
Albanese dismissed suggestions Monday that the move was solely symbolic.
“This is a practical contribution toward building momentum,” he said. “This is not Australia acting alone.”
In neighboring New Zealand, Foreign Minister Winston Peters said Monday that his government “will carefully weigh up its position” on recognizing a Palestinian state before making a formal decision in September.
“New Zealand has been clear for some time that our recognition of a Palestinian state is a matter of when, not if,” Peters said in a statement.


India’s new budget bets on AI, data centers to sustain growth

Updated 42 min 32 sec ago
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India’s new budget bets on AI, data centers to sustain growth

  • Budget features new Bharat‑VISTAAR AI‑powered platform for agriculture sector
  • It also includes tax holiday until 2047 for foreign companies using Indian data centers

NEW DELHI: India’s latest budget has emerged as one of its most technology-focused, with new measures to utilize artificial intelligence, semiconductor manufacturing, and expand digital infrastructure aimed at offsetting the impact of global tariff wars.

Finance Minister Nirmala Sitharaman presented the 2026-27 budget in parliament on Sunday, saying it would “accelerate and sustain economic growth by enhancing productivity and competitiveness” at a time when India was facing “an external environment in which trade and multilateralism are imperiled and access to resources and supply chains are disrupted.”

New Delhi has yet to secure a trade deal with its largest trading partner, the US, which last year hit it with punitive tariffs of up to 50 percent over India’s purchases of Russian oil. To mitigate their impact, India has been looking for alternative agreements, including last week’s agreement with the EU, cutting duty on 99.5 percent of Indian exports to the bloc.

The new budget prioritizes infrastructure and domestic manufacturing, with a total expenditure estimated at $583 billion.

It offers tariff concessions for products from the marine, leather, and textile industries — all of which have been affected by US tariffs — and provides duty exemptions on materials and goods used to process rare-earth minerals, make lithium ion batteries, solar glass, and components for electric vehicles.

The finance minister also announced doubled spending for semiconductor manufacturing to $4.8 billion and a tax holiday until 2047 for foreign companies providing cloud services using Indian data centers.

The budget also features Bharat‑VISTAAR (Virtually Integrated System to Access Agricultural Resources), a multilingual AI‑powered platform for the agriculture sector to give farmers customized, real‑time advisory on crop management, weather, soil conditions and government schemes in different Indian languages.

“There is a lot of focus on AI and technology. It is to achieve the ambitious target India has already declared — Viksit Bharat 2047. It is very clear that without technology, it would be difficult to achieve that target,” Prof. Pardeep S. Chauhan, Centre for Economic Studies and Planning, Jawaharlal Nehru University, told Arab News, referring to the government’s plan to transform the nation into a fully developed country by 2047 — the 100th anniversary of its independence.

“That was the need of the hour, and the government has taken care of it, focusing on semiconductors, AI, and rare-earth minerals.”

The technology focus also comes against the backdrop of China’s dominance in the global critical minerals supply chains, and last year’s restrictions imposed by Beijing in the wake of escalating trade tensions with the US.

“India lags far behind the US and China, particularly China,” Chauhan said. “India has taken this move to maybe after five, 10, 15 years ... compete up to some extent. Without technology, nobody can think of establishing (their) leadership — whether it’s in the economy, defense or financial infrastructure architecture. Everywhere you need technology.”