| Abstract: | India and Australia are rediscovering the vast potentials of maximizing mutual benefits that are inherent in their complementary economies. There is also a great deal of convergence of interests in the strategic domain. As an emerging power, India's profile has attracted attention by countries in the Asia Pacific region, which tended to neglect it in the past. The rise of China and its assertive stances have created an element of uneasiness in the region. Its military modernization and beefing up of naval capability are suspected to be behind enhancing its power projection capability. The strategic significance of the Indian Ocean for the region is huge. The region's growth is inextricably linked to the Indian Ocean. The littoral states in the region are home to 2.6 billion people, almost 40% of the world's population. The Indian Ocean is the world's third largest body of water, and the world's leading energy and trade seaway. The volume of global trade brings with it the re-emerging problems of terrorism and piracy, a shared policing challenge for all littoral states. The security of the Indian Ocean goes to the heart of both India's and Australia's national interests. |
