Australia has expressed willingness for a more active engagement with India through a more "comprehensive, strategic and contextual" approach in bilateral relations with a special emphasis on trade.

"We need to be much more actively engaged with India and Australia has to compete to attract New Delhi's attention. In its list of priorities, Australia should place India higher up," Australian High Commissioner to India Penny Wensley said at a seminar on 'India's changing global and regional outlook'.

She said the bilateral relationship between the two countries needs a comprehensive, strategic and contextual approach. "We are simply not paying enough attention, but with India on the move, Australia should be moving too."

The current bilateral trade at AUS$3.4 billion has the potential to increase, Wensley said adding Australian firms should move into the niche market and look in the fields of minerals and energy resource, information technology, health services sector and education for business and investment.

Commending India on its handling of the Iraq issue, she said, "It has been fascinating to watch how India has dealt with the issue. Though in a low-key manner, it made it clear that any action should be under the United Nations umbrella."