With bilateral trade between the two nations pegged at 20 billion Australian dollars in 2015, India is Australia's ninth largest trading partner and fifth largest export market, said Sidhu, whose family is originally from Punjab.
"Even as these figures are very large, there is a lot of scope for doing more on developing economic relationship," Sidhu told reporters.
She said Australia's trade with China is ten times than the size of trade it has with India. "One of my objectives is to find ways to grow economic relationship between two countries (Australia and India) not just in size but also in diversity," she said.
Australia was also closely working with India in the field of scientific research and technology besides the smart cities project, she said.
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The Australian Institute of Sports has partnered with Punjab Institute of Sports for improvement of athletes' performance which will involve bringing coaches and experts for excellence in the field.
Sidhu said Australia has placed India at the forefront of its international relationships and both are working together more closely than ever on security cooperation.
The envoy also emphasized on partnership between the two countries in the field of education.
She said Australia has rolled out a three-year multiple-entry visa system for India from July on pilot basis.
"This will help parents who travel to Australia to spend time with their children and they do not have to apply for visa every time they go," she said.
She said in the last 10 years, India born population in Australia has grown by three times in 10 years.
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The Australian High Commissioner said Punjab is one of the most culturally significant states for the country and "close ties with the region is the reason I have undertaken official visits to Punjab and Haryana."
The northern region being one of the most fertile and wealthy parts of India promises many exciting economic opportunities for Australia, she said.
Sidhu was speaking on 'Australia and India: Fostering collaboration for growth' organised by Confederation of Indian Industry here today, said a CII release.
"In vocational and education training, we have more than 15 sectors of focus. Major sectors include construction, electrical, healthcare, hospitality and automotive skills training," she said.
Sidhu said the trading base between the two nations is very narrow as 70 per cent of Australian exports to India comprise only two items - coal and gold.