India is the biggest single source of permanent migrants to Australia overtaking China.
The number of permanent migrants from India was 29,018 in 2011/2012, up by 12.7 percent on the previous year.
According to the Herald Sun, China was number two as visa places fell from 29,546 to 25,509 last year.
Immigration Minister Brendan O'Connor said Australia's Migration Trends 2011-12 report showed Asia is becoming the leading source of permanent migration.
During the past 15 years, the number of Indian-born Australian residents has increased fourfold while Chinese-born residents have tripled, the report added.