Australia supported India's claim for a permanent seat in an expanded UN Security Council. Talking to reporters in New Delhi on Thursday the visiting Australian Defence Minister Stephen Smith said, the two countries have also agreed to look into prospects of enhancing practical military cooperation by holding bilateral naval exercises.

Mr.Smith said the decision of Australia's ruling party on supplying Uranium to New Delhi has removed any potential irritant in their growing bilateral relationship.

On discussions with his Indian counterpart Mr. A K Antony, Mr.Smith said they have agreed on establishing semi-government level, visit of Indian defence minister to Australia next year and increasing military cooperation by having bilateral naval exercises. Asked if Australia could join the navies of India and the US for the Malabar series, Mr.Smith said, there is a possibility of that.

The visiting dignitary met Home Minister P Chidambaram and National Security Adviser Shivshankar Menon. He is scheduled to go to Mumbai on friday where he will visit the Western Naval Command.