India's Finance Minister Arun Jaitley arrived in Australia for four days of government and investor talks.
It's the latest round of negotiations that started five years ago with a view to establish a free-trade agreement between the two countries.
Mr Jaitley says an economic agreement will be a central focus during his stay.
"The discussions are on for a Comprehensive Economic Cooperation Agreement. And there are a few issues left on both sides which are being sorted out. I do hope some advance takes place in the coming months."
The minister's visit comes after Prime Minister Malcolm Turnbull described finalising a free-trade agreement with India as a high priority.
University of New South Wales Economist Tim Harcourt says such a deal could have significant financial benefits for both countries.
"Really, India's new to the scene but the potential is there with the young population and, of course, with the very strong institutional links that we have there."
India is Australia's tenth largest trading partner and fifth largest export market.
The federal government says the trading relationship between Australia and India has seen remarkable growth in recent years -- citing growth in the two-way trade of goods and services.
It identifies a youthful population and a diversified economy as factors influencing opportunities for Australian business in the areas of agriculture, energy, manufacturing, mining and services sectors.
And it says independent modelling estimates an Australia-India Comprehensive Economic Cooperation Agreement could increase Australia's G-D-P by over 45-billion-dollars over 20 years.
