Foreign Minister Penny Wong met with her Indian counterpart Subrahmanyam Jaishankar a day after the two joined their countries' defence chiefs for talks in New Delhi.
Mr Jaishankar said he and Senator Wong took stock of their growing ties in trade and defence, and there was "a real momentum" in their relationship.
The Indo-Pacific was a key priority for both countries, they said.
Mr Jaishankar and Senator Wong said their nations were committed to a free, inclusive and rules-based Indo-Pacific region.
While neither of them named China, Deputy Prime Minister and Defence Minister Richard Marles on Monday said China remained a top concern for India and Australia.
"For both of us, China is our biggest trading partner," Mr Marles said.
"For both of us, China is our biggest security anxiety."
Canberra angered Beijing in 2018 by banning Chinese telecommunications giant Huawei from rolling out Australia's 5G, but economic ties have improved since the Labor government won office last year.
However, Australia and China continue to compete over influence in the Asia-Pacific.
For India, a years-long military stand-off along the shared but disputed border with China has exacerbated tensions and brought ties to a historic low.
India and Australia are also working to strengthen the Quad, a security alliance that includes Japan and the United States.
Mr Jaishankar said that Hamas' attack on Israel on October 7 was an act of terrorism and called the situation in Gaza a "humanitarian crisis" that needed urgent assistance.
Senator Wong said she shared India's view and added the humanitarian situation in Gaza was dire.
She also highlighted the need for "Israel to observe in its actions international law, including the protection of civilians".
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