The advisory steps up a warning issued last month
CM Sheila Dikshit and Sports Minister M S Gill at a sports complex in New Delhi.Coming Commonwealth Games in India is said to face threats from terrorists attacks.
The US Embassy in India has warned of possible "imminent attacks" by militants in the capital, Delhi, and advised US citizens to be vigilant.
"There are increased indications that terrorists are planning imminent attacks in New Delhi," said a statement on the embassy's website.
It urged people to avoid several locations popular with Westerners.
Militants linked to Pakistan-based Islamist groups have been blamed for previous attacks in the city.
The advisory, which steps up a warning issued last month, said that popular shopping areas such as Chandni Chowk, Connaught Place, Greater Kailash, Karol Bagh, Mehrauli, and Sarojini Nagar, should be avoided.
It said US citizens travelling or living in India should maintain "a high level of vigilance", and be aware of their surroundings or any unattended packages.
THE Department of Foreign Affairs and Trade has upgraded its travel advice to India, warning Australians to avoid travel there because of the "high risk of terrorist activity"around New Delhi marketplaces.
Australia joins the US and Canada in issuing specific warnings about attacks by militants against markets frequented by foreign visitors.
"Specific and credible information suggests that markets, including Chandni Chowk, Connaught Place, Greater Kailash, Karol Bagh, Mehrauli and Sarojini Nagar, could be targeted by terrorists in the coming days or weeks.
"Information received on 1 May suggests that attacks against markets in New Delhi may be imminent. Australians should avoid all markets in New Delhi," DFAT said.
Its warning follows advice issued last Thursday by the Indian government that terrorist attacks are likely in Kolkata (Calcutta), including Kolkata airport.
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Trade Minister Simon Crean will visit India for official talks despite the terrorist warning, his office confirmed yesterday.
Mr Crean is scheduled to arrive in New Delhi today for briefings on preparations for the October Commonwealth Games.
He will also travel to the financial centre of Mumbai and to Hyderabad in India's south during the six-day visit.
India is Australia's fourth-largest export market. Mr Crean said the visit came at a "crucial time", with booming trade in the resources sector and investment. There was also great potential to extend exports in services, agriculture, manufacturing and renewable energy.
Terrorists will try to destabilise the country and stop the holding of Commonwealth Games in Delhi, which has become an "attractive" target for them but there is no need to panic, Delhi Chief Minister Sheila Dikshit said today.
"Nobody's life will come to a standstill. And certainly no panic should be there. Of course the police, the Home Ministry and Lt Governor are doing their best and they are doing their work (on this matter)," she said.
Her comments come in the backdrop of US, UK and Australia warning about "imminent terror attacks" in tourist-hubs in the capital.
"Look I will tell you that Commonwealth Games would be an attractive target for them (terrorists). The aim of terrorists is to destabilise the country and show that the government cannot hold the Commonwealth games, Dikshit told NDTV.
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