Varghese, whose tenure ends this month, also gave a thumbs-up to the evolving Indo-Australian ties, saying there is a "conjunction or convergence" in the relationship which was absent a few years ago.
On the challenges faced by India, he said the level of expectation from India has increased tremendously because of its growth story, democracy and demography.
"Many countries expect big things from Indian foreign policy. But the country is not yet geared up to support major powers. It should gear up to face the challenge and manage expectations. This is the view that is seen in the world today," he said in an interaction with reporters here.
India and Australia are on the "same page" when it comes to demanding "fundamental refurbishment" of global institutions and the United Nations Security Council to reflect current geo-political realities, he said.
Both countries have similar opinions on several issues that includes reforms in UNSC and other global issues of importance, he said.
On the South China Sea dispute, he said Australia advocates framing of Code of Conduct and adherence to it though the permanent solution would be a resolution through peaceful means.
To a specific question, he said no western country can contain China. "Policy of containing China can never be possible. A policy of containment will simply not work," he said.
