"The Indian economy looks likely to continue to expand at a relative rapid pace in coming decades and to become an increasingly important part of the world economy," the RBA said in its quarterly statement on monetary policy released Friday.
The increase in India's prominence in the world economy has been a boost to the economy in Australia, central bank stated.
"Indian demand for Australia's exports has risen sharply, with particularly rapid growth over the past decade," Australian news agency AAP cited the RBA as saying in a statement.
"This has seen India's share of Australia's total exports increase to around 6.5 percent - a four-fold increase in less than a decade."
The central bank said that export of coal to India has risen strongly over the past decade and it now accounted for 40 percent of total goods exports to India in 2008-09.
"Coal exports are likely to continue to grow over the next few years, as significant planned expansions in India's steel making capacity come online.
"Liquefied natural gas (LNG) is another likely source of future growth in Australia's good exports to India," the central bank said.