Deputy Prime Minister Mark Vaile says India must sign the nuclear non-proliferation treaty before it would consider such a move.
Currently Australia prohibits the sale of uranium to non-signatories of the nuclear non-proliferation treaty, but the US senate will this week decide whether to dump such a policy to pursue a nuclear co-operation deal with India.
The move has prompted two senior Indian government officials to call on Australia to follow suit.
"Once the legislation is through, we would hope that Australia could push itself -- and push the Nuclear Suppliers Group -- to supply us with uranium and state-of-the-art technology," said national security adviser M K Narayanan.
"The US, Russia, the UK have recognised why we need nuclear energy and they are going out of their way to assist, and we would hope that Australia would see it," he told Fairfax.
"A friend in need is a friend indeed that's the bottom line."
However Mr Vaile has remained steadfast on the government's terms of sale when it came to uranium.
"Our policy remains the same as it has been," he told ABC radio.
"The way we addressed this issue with China, we maintained we could not do business with China until we had the nuclear non-proliferation treaty signed and in place.
"And that is the policy that we would apply today with India."
Prime Minister John Howard is reportedly open to changing the policy, but it is believed Foreign Minister Alexander Downer remains opposed to the move.