Australia's High Commissioner to India Harinder Sidhu also said the change in visa regime was carried out to ensure that Australians get first preference in skilled jobs. She said Indians are mostly employed in the high-skilled IT sector where Australia does not have sufficient manpower.
Referring to incidents of attacks on Indian students in Australia, some of which were allegedly racial in nature, she asserted that Australia has "zero tolerance" for any racial behaviour.
"We have diaspora from 120 countries living in Australia. These restrictions are only to maintain our integrity. There is no intension to target any country, including India," Sidhu said while replying to a volley of questions on the issue.
Australia last month announced scrapping of the popular 457 work visa used by over 95,000 foreign workers, majority of them Indians, to tackle the growing unemployment and replace it with a new programme requiring higher English-language proficiency and job skills.
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"But, in IT skills area, we are are in short supply. And, we expect that Indians, who have qualified before, will continue to qualify," she said.
Prime Minister Narendra Modi last week had conveyed to Turnbull India's concerns about the impact of Australia's decision to abolish the popular work visa.
The High Commissioner said the 457 visa regime only concerns temporary work visas, and the number of Indian students and permanent migrants is continuously growing.
"In 2016, about 2,80,000 visas were issued to Indians. For education, the number of visa has gone up dramatically. In 2014, it was 46,000 students, 2015 it was 53,000 and in 2016, it went up to over 60,000.
"Also, about the attacks on students in Australia, we have said that all the attacks weren't racial in nature. Many were criminal attacks. Australia does not have tolerance for racial behaviour," she added.