LONDON - THE United States and Britain led international condemnation of the attacks in India's financial capital Mumbai on Wednesday, amid reports that Westerners were targeted in the violence that killed 80 people.

President-elect Barack Obama on Wednesday condemned the Mumbai attacks and said the United States must work to strengthen ties with India and other nations to 'root out and destroy terrorist networks.'

'These coordinated attacks on innocent civilians demonstrate the grave and urgent threat of terrorism,' Mr Obama's chief national security spokesperson, Brooke Anderson, said in a statement.

'The United States must continue to strengthen our partnerships with India and nations around the world to root out and destroy terrorist networks.'

The statement added: 'President-Elect Obama strongly condemns today's terrorist attacks in Mumbai, and his thoughts and prayers are with the victims, their families, and the people of India.'

The European Union also expressed its 'horror and indignation' at the series of shootings and blasts at two of Mumbai's top luxury hotels, the Taj Mahal and Trident, and the main Chhatrapati Shivaji railway station.

The Australian government on Thursday condemned a wave of attacks in the Indian city of Mumbai as a cowardly terrorist assault on democracy.

At least two Australians were injured in the series of coordinated attacks that killed nearly 80 people as heavily armed Islamist militants hit two luxury hotels and took foreign guests hostage.

'This is a cowardly act. It's indiscriminate, it's a terrorist act, it's an assault on democracy,' acting Foreign Minister Simon Crean told a news conference.

Canada condemned the series of terror attacks that occurred in Mumbai Wednesday and reiterated its determination to fight against terrorism.

'Canada strongly condemns the savage terrorist attacks in Mumbai, which have left hundreds of innocent civilians injured or killed. These cowardly attacks are truly appalling,' Foreign Minister Lawrence Cannon said in a statement.

'Canada stands firmly united with the government of India in condemning these despicable acts of violence,' it said.

It reiterated Ottawa's commitment to close cooperation with India to promote international security and to fighting terrorism.

Heavily-armed men who attacked the hotels took foreign guests hostage, although there were no immediate reports of Western casualties.

One British guest of the Taj Mahal hotel told local Indian television that he had been among a dozen people herded together by two heavily armed men andtaken up to the hotel's upper floors.

'They said they wanted anyone with British and American passports and then they took us up the stairs,' he said. It was not immediately clear if some hostages were still being held.

'We strongly condemn the terrorist attacks that have taken place in Mumbai, India,' US State Department deputy spokesman Robert Wood said in a statement, describing the violence as 'horrific'.

'Our sympathies go out to the families and friends of those killed and injured, and to the people of Mumbai,' he added, saying the department was not aware of any American casualties.

British Prime Minister Gordon Brown condemned the attacks in the former colony as 'outrageous", and offered India all the help it needed.

'These outrageous attacks in Mumbai will be met with a vigorous response,' he said in a statement.

'I have sent a message to Prime Minister (Manmohan) Singh that the UK stands solidly with his government as they respond, and to offer all necessary help.

'Urgent action is under way to offer every possible protection to British citizens in the region.' The British foreign ministry said it had not yet received any reports of British casualties.

Foreign Secretary David Miliband said the attacks 'remind us, yet again, of the threat we face from violent extremists", and said Britain and India would 'continue their joint efforts to counter the actions of terrorists'.

The French presidency of the European Union said it had learnt of the attacks 'with horror and indignation", saying: 'It condemns them in the strongest possible terms.'

'Our thoughts go out first to the families and those closest to the victims,' the presidency said in a statement, and offered India the EU's 'solidarity in these tragic circumstances.'

The EU 'shares in the mourning of the Indian nation and stands by its side during this dramatic test,' it added.

The Maharashtra state government said 78 people died in the attacks late Wednesday, according to the Press Trust of India news agency, and that six Indian army units had been deployed to the south of the city.

A group calling itself the 'Deccan Mujahedeen' claimed responsibility for the attacks in emails sent to various media outlets. -- AFP