This commentary attempts to put into perspective the recent developments in India–Australia bilateral ties. It argues that economic incentives and strategic calculations have compelled Australia to get closer to India. Australia’s decision to supply yellowcake to India, expanding bilateral naval cooperation and Australian Defence Minister Stephen Smith’s December 2011 visit should be seen in that context. Australia has realised that it does not make sense to lag behind when countries across the world are jockeying to benefit from India’s rise.