The talks focused on shared strategic and security interests, including maritime security, co-operation in the Indian Ocean and regional security, The Australian reported.
Smith said Australia and India were each committed to promoting regional and global security and shared a common commitment to democracy, human rights and the rule of law.
"We are jointly leading efforts to further develop the regional security architecture of the Indian Ocean, with a particular focus on maritime security," Smith said in a statement.
Earlier, speaking at the annual Asia-Pacific Chiefs of Defence Force Conference in Sydney, Smith said Indian Ocean would eventually become a crucial global trading thoroughfare.
The Asia-Pacific and the Indian Ocean Rim will become the world's strategic centre of gravity as growth in the region accelerates and the US rebalances to the Asia-Pacific, he was quoted as saying by Sky News.