Indian Prime Minister Narendra Modi has called for a closer strategic partnership between India and Australia as well as a closer trading relationship, warning that peace in the Asia-Pacific region cannot be taken for granted.

Modi said in a rare address to the Australian Parliament on Tuesday that few countries have as much synergy as energy-hungry India and resource-rich Australia. He says countries are also "united by the ideals of democracy."

Modi's speech came a day after Chinese President told the Australian Parliament that China, Australia's largest trading partner, was committed to peaceful development and resolution of territorial disputes.