India and Australia have decided to institute semi-government level talks on Defence Matters between suitable institutions of both sides. The decision was taken during the discussions between the Defence Minister A K Antony and the visiting Australian Defence Minister Stephen Smith in New Delhi on Wednesday. Regional Security issues also came up for discussion at the 40-minute meeting. Both sides agreed that the challenges in the area of Maritime Security like piracy and freedom of navigation are important issues which required concerted efforts of the global community. Both Ministers also agreed to examine the possibility of undertaking a full-fledged bilateral Naval Exercise in the future. Both sides noted that the bilateral Defence Cooperation activities are gradually strengthening. They noted that the inaugural session of the Defence Policy Talks held in New Delhi in December last year and the ongoing Service-to-Service Staff Talks are important mechanisms for developing constructive and mutually beneficial. The two sides also noted that the practice of the respective Navies conducting Passage Exercises during Naval Ship Visits to each other’s ports have proved to be beneficial and that these should continue. Mr. Smith invited Mr. Antony to visit Australia next year, which has been accepted by the latter. Mr. Smith is on a three-day visit to India. A tri-Services Guard of Honour was presented to Mr. Smith.