India and Australia will hold their first ever joint naval drills next month, as the two countries seek to deepen defense ties and counter China's growing sway in the Indian Ocean.

The maritime exercises, to be held in the Bay of Bengal off India's eastern coast next month, will include anti-submarine warfare and coordinated anti-submarine drills, the Australian High Commission in Delhi said in a statement.

The Indian Ocean is fast emerging as a new arena of competition between China and India as New Delhi tries to regain its position as the dominant maritime power in what it views as its backyard.