"I very much hope Australia, as a member of the Nuclear Suppliers' Group, will endorse what US President George W Bush and I have worked out. This is an arrangement that helps the cause of nuclear non-proliferation. India has an impeccable record of not entering into any unauthorised arms proliferation," Dr Singh said in an interview to The Australian.

Brushing aside past misgivings over New Delhi's naval buildup, Australia on Monday signed a Memorandum of Understanding with India on cooperation in defence, covering maritime cooperation to check terrorist threat in the Malacca Straits, the key sea-lane for trade.

India and Australia on Monday also decided to set up a group of officials to study the Indo-US nuclear deal clinched during the recent visit of Bush.

Howard Tuesday said his country was "serious" about fostering greater political and economic ties with India at a time when the world's focus has shifted towards Asia, particularly on the subcontinent nation.

"We in Australia are serious at government's level and on the commercial level to promote this relationship. And we will do everything we can to promote it," he said, while addressing a luncheon meet organised by Bombay Chambers of Commerce and Industry in Mumbai.

Howard Wednesday talked tough on terrorism while condemning the Varanasi blasts, and advocated cricket diplomacy to foster good India-Pak and India-Australia relations.

Howard minced no words in condemning the blasts at the Sankat Mochan Temple in Varanasi and appealed to all nations to join the global fight against terrorism.

Howard left for Sydney by the Royal Australian Airforce special flight on Wednesday night.

Prime Minister Manmohan Singh welcomes Australian Prime Minister John Howard and his wife Janette Howard at a ceromonial reception at Rashtrapati Bhavan on March 6.

Photograph: Ranjan Basu/Saab Pictures

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