It is ''almost a given'' Australia's decision to sell uranium to India is linked to moves to strengthen military ties between the two countries, analysts have said.
Defence Minister Stephen Smith is expected to make a significant announcement about the Australian-Indian strategic relationship during a speech in Mumbai later this week.
He is to address the Asia Society India Centre on ''building the strategic partnership between Australia and India''.
Mr Smith will be the first Australian minister to visit India since the decision to permit uranium sales to the subcontinent power.
''This decision is one which I strongly supported at the [ALP] conference and one which I expect India will very warmly welcome,'' he said.
Mr Smith said the relationship with India was one of Australia's ''most important''.
''The potential for that to grow, particularly as defence to defence contacts applies, is great,'' he said. ''I'm looking very much forward to encouraging greater naval contact between Australia and India.''
A senior analyst with the Australian Strategic Policy Institute, Andrew Davies, said India was the leading emerging rival to China in the 21st century.
China is closely aligned with Pakistan, which has a disputed border with India, and India has long been suspicious of its giant neighbour.
Mr Davies said it was China's development of nuclear weapons that had driven India down that path. Pakistan went nuclear in response.
Mr Smith flew out of Perth yesterday to hold a ''Defence Minister's dialogue'' with his Indian counterpart, A.K.Antony.
''[This] will involve discussions on shared strategic and security interests, including maritime security, co-operation in the Indian Ocean and regional security,'' he said.
Mr Smith said the two men would discuss ways in which to build on the Joint Declaration of Security Co-operation signed in 2009.
Mr Davies warned there could be a limit to how close India was prepared to get with the West.
''Those who think India is going to embrace a warm relationship with either Australia or the [United States] are missing something,'' he said.
''India led the non-aligned nations during the Cold War and still plays Western defence manufacturers against the Russians, for example.''
He warned a closer Australian-Indian defence relationship would not go unnoticed in either China or Pakistan.
''We need to be aware China will see this as part of an encirclement,'' he said. ''The Chinese are already talking about a crescent of US alliances stretching from Japan around to India.''
The 2009 Defence White Paper singled India out as a major player in the region in the years to come.
''By some measures India is expected to overtake Japan as the third largest global economy [after the US and China] in the next five years,'' the document said.
''Like China, it will be focused on fostering development while seeking recognition as a major power with increasingly global interests.''
Analysts have noted that China and India are likely to emerge as rivals for Middle Eastern oil as the West moves to reduce its dependence on fossil fuels.
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