Saturday 19 November 2022 11:29 PM Australia's relationship with India grows stronger amid China trade war trends now

Anthony Albanese joked and laughed as he met the Indian prime minister in a sign of strengthening ties between the two countries as tensions linger with China.  

The prime minister and Narrendra Modi appeared to be in high spirits as they met on the sidelines of the G20 summit on Wednesday.

Mr Albanese cracked a joke that Mr Modi was now 'president and prime minister' with India to host the G20 presidency next year. 

Their encounter was more relaxed than the polite handshake shared between Mr Albanese and Chinese president Xi Jinping on Tuesday.

Mr Albanese made it a point to mend the relationship and end years of tensions with their meeting marking the first time in six years leaders from both countries sat down.

He already met Mr Modi when the pair were introduced at the Quadrilateral Dialogue in Tokyo after his election win on May 21.

Mr Albanese later tweeted about their latest meeting and the strengthening of ties between Australia and the world's fifth-largest economy. 

'So wonderful to see my friend @narendramodi and to celebrate the rich connections between our two countries and our people,' he wrote on Wednesday. 

The prime ministers will meet again when Mr Albanese visits India in March and Mr Modi visits Australia for the Quad Leader's Summit. 

Australia India Institute chief executive Lisa Singh said the warm reception marked a momentous year where the countries gradually strengthened their ties.

'This has been the most impactful year for the relationship that I've seen,' she told Sydney Morning Herald.