Australia and India will hold their first joint naval exercise in 2015, Australian Minster for Defense Stephen Smith said.
Indian Defense Minister A.K. Antony will visit Australia next month to boost bilateral military ties. Antony had originally been scheduled to visit in January.
The Indian government stopped short of sending the army into Chhattisgarh state in the wake of a deadly Maoist attack that killed 27 people.
India has commissioned the navy's first squadron of 16 MiG-29K fighters to be operated from a forthcoming aircraft carrier.
Agusta Westland's bids for utility helicopters for India's navy and coast guard will remain, despite the company being investigated over bribery allegations in another contract.
Disputed border issues will be prominent during meetings when Chinese Premier Li Keqiang visits India this month on the premier's first foreign trip.
India's Scorpene submarine project likely will face an 18-month delivery delay after the pullout of consultants from Spanish shipbuilding partner Navantia.
India must speed up modernization of its army and air force in the face of China's military threat and Pakistan's backing of Taliban groups, an official says.
Defense Minister A.K. Antony warned the government's defense businesses to make sure the long-awaited Light Combat Aircraft is ready no later than 2014.
Final procurement of a $300 million sub-launched torpedo deal will go ahead after the Ministry of Defense dismissed concerns over alleged improper purchasing processes.