Dressed in a black gown Kangana was praised and extolled by the audience for her stellar performances in Queen and Tanu Weds Manu.
While interacting with audience, Kangana shared her views of how girls need to chase their dreams.
"Everyone has her own journey and women has to find herself on her own. I worked on my ambitions and plans and it was a difficult journey," she said, adding that there was a time when she had no money to meet her ends.
National award winning actress said yoga and meditation help her to look beautiful.
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The 14-day-long festival is one of the biggest celebrations of Indian cinema in Southern Hemisphere.
Indian diaspora and Australians converged to watch the star studded opening ceremony of the festival attended by Kangana, Imran Khan, film director Nikhil Dhawan, Indian High Commissioner Navdeep Suri and Dum Lagake Haisha actress Bhumi Pednekar.
The festival has for the first time coinciding with the Independence Day tomorrow and will be celebrated with a flag-raising ceremony followed by a mass Bollywood dance competition open to all dancers.
Speaking on the occasion, the Indian High Commissioner said that the flag hoisting to be held tomorrow at the Iconic federation square was a matter of great pride for India and Indians in Australia.
The festival this year has the theme of "Equality", which will be explored through a range of different lenses, from gender and sexuality to disability and religion.
The fashion show will feature Indian designer Anamika Khanna who will unveil a unique collection based on Indian crafts designed along with Australian designers.
Actress Sonam Kapoor will be the show-stopper.