India and Australia have significantly deepened their defence and security partnership, driven by shared concerns over China's growing assertiveness in the Indo-Pacific and the prospect of a more unpredictable US foreign policy posture in the region, according to a report by the Lowy Institute, an Australian think tank. The bilateral defence architecture has expanded rapidly, moving well beyond ceremonial exchanges into substantive military, intelligence, and technological cooperation.

Key Agreements From Modi's July 2026 Australia Visit

During Prime Minister Narendra Modi's visit to Australia in July 2026 — his third trip to the country in 12 years as Prime Minister — he and Australian Prime Minister Anthony Albanese signed a Joint Declaration on Defence and Security Cooperation. The two leaders also agreed on a classified maritime security collaboration roadmap and launched the Australia-India Partnership on Cyber, Critical Technologies and Supply Chains (PACTS), which includes a dedicated defence pillar.

Additionally, the two sides formalised cooperation between Australia's Maritime Border Command and the Indian Coast Guard through a Memorandum of Understanding (MoU). This followed a separate agreement the previous month, when defence ministers from both countries committed to working towards an MoU on the Provision of Defence Articles and Defence Services.

Scope of Military Engagement

According to the Lowy Institute report, the armed forces of both nations participated in 14 bilateral and 64 trilateral or multilateral exercises between January 2020 and July 2026. The defence partnership now encompasses structured political-military dialogues, regular ground, air, and naval exercises, and cooperation in intelligence, hydrography, logistics, professional education and training.

Notably, cooperation has extended into previously sensitive operational domains — including anti-submarine warfare (ASW), air-to-air refuelling, submarine rescue, and replenishment at sea. This expanded capability-sharing has had practical effect: it has facilitated Australian vessel operations in the Middle East and Indian military operations in the South Pacific.

AUSTRAHIND 2026 and the Quad Connection

The 5th edition of the AUSTRAHIND joint military exercise concluded on 2 November 2026, with a closing ceremony held at the Foreign Training Node in Thiruvananthapuram, Kerala. According to the Indian Army, the 14-day exercise brought together troops from both countries for intensive training focused on enhancing interoperability, fostering mutual trust, and reinforcing shared commitment to regional security.

Within the broader Quad framework — alongside the United States and Japan — India and Australia are actively expanding maritime domain awareness (MDA) in the Indo-Pacific, improving shared logistics capabilities, coordinating on economic and technological security, and collaborating on humanitarian assistance and disaster relief.

People, Trade, and the Strategic Foundation

The Lowy Institute report underscored that migration and commerce have emerged as equally important pillars of the relationship. Approximately one million people of Indian origin now live in Australia, and bilateral trade has crossed the $50-billion mark following the conclusion of the Economic Cooperation and Trade Agreement (ECTA) in 2022. This people-to-people and economic foundation lends durability to the security alignment, analysts note.

As the Indo-Pacific strategic environment grows more complex, the India-Australia defence partnership appears poised to expand further — with both governments signalling intent to deepen cooperation in emerging domains such as cyber and critical technologies.