Australia will host a key upcoming international naval exercise for the first time.
Defence forces from Australia, India, Japan and the United States have taken part in Exercise Malabar for the past three years.
The event involving military ships and aircraft is designed to promote co-operation between countries.
Prime Minister Anthony Albanese revealed Australia would host the exercise as he met with India's External Affairs Minister Subrahmanyam Jaishankar at Kirribilli House in Sydney on Saturday.
Mr Albanese is due to travel to India in the next few weeks to finalise a trade deal between the two nations and said he was keen to ramp up economic and security ties.
"Our relationship goes from strength to strength," Mr Albanese said on Saturday.
"Our economic relationship is important. I think we have complementary economies.
"I look forward to strengthening that as well, as well as on security issues."
In addition to his upcoming trip to India, Mr Albanese will travel to New Delhi in September for the next G20 meeting.
Australia will also host the annual meeting of Quad leaders in the first half of the year.
