Australian prime minister John Howard will propose to India during his state visit in January that both countries should work out a strategic cooperation framework to accommodate emerging security situations, terrorism and maritime safeguards in the Indian Ocean.
Australia is keen to have a strategic relationship with India mainly focusing on military cooperation and terrorism and trade related maritime crime.
Though India and Australia have agreed on enhancing their cooperation on these issues, they lack a high level approval for joint military exercises, military technical cooperation, and regular service-to-service contacts and intelligence cooperation.
So far, cooperation has taken place on a case-by-case basis, but this lacks a high level of commitment to expand it further.
India also realises that without a tie up with Australia, it is difficult to control the Indian Ocean.
Though relations were strained after the 1998 nuclear tests, both countries have left behind the past and are moving forward for greater cooperation.
Australia is also confident of India