Mr Modi, who has held power in India since 2014, is visiting Melbourne from Wednesday as part of the Australia-India Annual Leaders' Summit where he will meet with Prime Minister Anthony Albanese.
The nations established a landmark comprehensive strategic partnership in 2020, which aimed to strengthen education and defence co-operation, along with protecting neighbouring maritime space.
Australia India Institute chief executive Lisa Singh said Mr Modi's visit would be an important time for deepening the partnership, which built on a smaller 2009 deal.
"We could see more establishing of (deals) in defence ties," she said.
"We want to combine our complimentary strengths as two maritime democracies.
"One of the ways we want to do that is to boost defence literacy and industrial ties, particularly in areas of education."
Conversations about increased tertiary study arrangements, information sharing and naval exercises are also expected to feature, as Australia "looks more long-term" at strategic partnerships.
The visit will have a backdrop of the long-range missile test by China in the South Pacific, which was launched this week after limited notice from Beijing.
It could prompt India and Australia to strengthen their trading ties, given both countries have a strong reliance on China for trade.
"Our trade relationship still has a long way where it can grow," Ms Singh said.
"This works because our economies are complimentary. Australia exports raw industrial products like coal and critical minerals, while India drives value back through refined products like pharmaceuticals."
The two countries currently have more than $50 billion worth of trade between them.
Mr Modi will also use his trip to visit New Zealand, where he is due to sign a free trade agreement, but Ms Singh said that would not preclude Australia from striking a similar deal in the future.
Australia's Indian community is also preparing for a booked-out event at Melbourne's Docklands Stadium, where Mr Modi, accompanied by Mr Albanese, will appear on Thursday.
Both of Mr Modi's previous Australian public appearances have been in Sydney, where he attracted crowds of thousands.
Melbourne is home to the largest Indian population in the nation. The two-hour show will aim to showcase the breadth of India's pluralistic culture.
4°C