Visiting Australian Defence Minister Kevin Andrews also pitched for a quadrilateral naval exercise with Japan and the US as was done in 2007.
He said Australia "recognises India's critical role in supporting security, stability and prosperity of the Indian Ocean region".
"This is why Australia views India as a key strategic partner and there is scope for us to cooperate further on broader global issues," he said delivering a lecture at the Defence Ministry-run think tank IDSA.
"This intention was formally recognised during Prime Minister Modi's visit to Australia in November 2014, where he and Prime Minister Abbott formalised a whole-of-government Framework for Security Cooperation, which will include work to facilitate greater defence interaction over time," he said.
Talking about the upcoming bilateral naval excercise, Andrews said a healthy programme of bilateral defence engagement exists between the two countries.
"In this setting, it is not surprising that, being Indian Ocean states, defence engagements between Australia and India focus on joint naval cooperation," he said.
"We are also slowly seeking to build our bilateral Air Force relationship based on our use of common platforms such as the Hawk, C-17, C-130 and P8 maritime patrol aircraft".
He said Australian Air Force recently invited India to attend Exercise PITCH BLACK 16.
Asked if he would favour a quadrilateral naval exercise as done in 2007, he said, "If indeed quadrilateral opportunities arise in the future, we would be having an inclination to be part of those exercises".
When such an excercise was done in 2007 as part of the Indo-US Malabar excercise, China had objected following which no such excercise was undertaken after that.
This time, US and India have invited Japan to be part of the Malabar scheduled next month.
Andrews also said he was looking at a tie-up with Indian Defence Research and Development Organisation (DRDO) and its Australian counterpart.
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