"The survey shows a record 10 per cent surge in the number of international students coming to Australia to 5,54,179.
"Australia has some of the world's best institutions and academics and our government recognises the importance of our international education system," Australia's High Commissioner to India, Harinder Sidhu said.
"The Australia-India education relationship is strong and vibrant. India is our second largest source of overseas students," he said.
The survey of 65,000 students revealed that a record nine out of 10 international tertiary students were either satisfied or very satisfied with their overall experience in Australia.
"The 2016 preliminary export data shows international education exports hit a record USD 21.8 billion, making it Australia's third largest export after iron ore and coal," it added.