India and Australia have made "significant and ambitious" efforts for better economic and security cooperation, Australian Prime Minister Anthony Albanese said on his visit to New Delhi on Friday, claiming India to be a "top-tier security partner."

"We are partners and building that partnership even stronger each and every day,'' he told reporters.

The statement came ahead of his meeting with the Indian Prime Minister Narendra Modi.

Boosting economic relations

Albanese said Australia and India have decided to speed up the finalization of the Comprehensive Economic Cooperation Agreement (CECA).

"This transformational deal will realize the full potential of the bilateral economic relationship, creating new employment opportunities and raising living standards for the people of both Australia and India," he said.

The CECA was stuck in negotiations for more than 10 years before talks were restarted in 2011. However, after reaching an impasse in 2016, the discussions on the deal were suspended.

In 2021, the CECA talks were again resumed, but a deal is yet to be formalized.

Last year, a smaller free trade deal — the Economic Cooperation and Trade Agreement (ECTA) — was signed between the two nations. It was India's first agreement with a developed country in a decade.

New Delhi said ECTA has the potential to double the current bilateral trade between Australia and India, which was around $27.5 billion  (€24.2 billion) in 2021, and is estimated to reach up to $50 billion within five years, according to figures published by Reuters news agency. It was also Cranberra's ninth-largest trading partner in 2022.

Albanese also said earlier this week that India, along with Indonesia, will rise up to become the world's third and the fourth largest economies in the future, which Australia sees as an "incredible opportunity."

'Working together' in the Indo-Pacific

India and Australia are members of the Quad group along with Japan and the United States. The alliance aims to counter China's influence in the Indo-Pacific region.

Albanese said in order to ensure Australia's defense assets are top of the line, they have to build capabilities and "to build relationships."

He stated that he had been building such relationships with India in response to media queries on Australia-China relations, after describing New Delhi as a " top-tier security partner."

Albanese said Australia has also strengthened its ties with China.

In a tweet on Thursday, Albanese said that New Delhi and Canberra "are working together to ensure the Indo-Pacific is open, inclusive, and prosperous."

aa/sms (Reuters, AP)