He was delivering an address titled 'The India-Australia partnership in the Indo-Pacific - contributing to the region' before the Indian Association of Foreign Correspondents here.
"We have a growing annual counter-terrorism dialogue and are developing practical cooperation on responding to the threat in South and Southeast Asia," he added.
Sidhu's statement has come days after Prime Minister Narendra Modi called upon the world communities to unite in the fight against terrorism and radicalisation, during his historic address in the Maldivian Parliament.
"Prime Minister Modi has highlighted the threat which terrorism poses for all our societies during his recent visits to the Maldives and Sri Lanka. We both support an effective Financial Action Taskforce which addresses the financing of terrorism," Sidhu said.
Sidhu stressed the importance of concluding the Regional Comprehensive Economic Partnership (RCEP) partnership among India, China, Australia and other ASEAN countries.
"When it comes to trade, India is a leader and an Asian and Indo-Pacific powerhouse. For that it reason it is vital India plays a greater role in shaping the regional trading order," Sidhu said.
"When it comes to trade, India is a leader and an Asian and Indo-Pacific powerhouse. For that it reason it is vital India plays a greater role in shaping the regional trading order. Successfully concluding RCEP - which includes India, China and the ASEAN countries as well as Australia - will help shape the regional rules and norms governing trade, investment and the broader economy," he added.
RCEP countries represent almost half the world's population and over 30 per cent of global GDP.
"Concluding a high-quality RCEP will expand regional trade and investment. It will strengthen regional supply chains. And it will create a platform to drive ongoing economic reform. Very importantly, it deals India into regional economic integration. Australia is keen to work with India on RCEP," he said.