India's recent growth performance has been impressive and it appears set to again become a major global economic power. But, sustaining this growth poses formidable challenges. Australia stands to gain much from India's growth. In this article, we review recent developments in the Indian economy, identify policy challenges and discuss short-to-medium term prospects, noting some of the main similarities and differences between China and India. Then, we look at opportunities for significant growth in Australian-Indian economic links and policy implications including the possible role of a free trade agreement.