Indian community groups in Australia have welcomed figures confirming India is the biggest single source of permanent migrants to Australia.
But say they have concerns about the government's response to the trend of growing numbers of Indian migrants looking to settle in Australia.
The Australia's Migration Trends 2011-12 report also showed the growing prominence of Asia, with seven of the top ten source countries now in the Asian region.
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Biwa Kwan reports.
Released by Immigration Minister Brendan O'Connor, the Migration Trends report shows almost 30,000 Indians migrated to Australia in 2011-12.
The figures show India has dislodged China from the top spot and sent it to second place, almost equal with Britain, each with just over 25,000 permanent migrants.
The traditional cohort of British moving to Australia has continued to fall from a high of 22.5 per cent in 2005-06 to 13.7 per cent currently.
Demographer and sociologist from Sydney's University of Technology, Professor Andrew Jakubowicz, says the number of Indian migrants to Australia has been growing for a number of years now, shifting the religious and cultural diversity of Australia.
"The rise of Indian migration is hardly a surprise. It's been a trend that we have seen for some time. If you look for instance at the number of people espousing the Hindu faith in the 2011 census, it had doubled over five years. So the curve of Indian migration has been growing very, very rapidly. And it represents probably the interests Indians have in the Australian environment, the fact that many of them have fairly good English so they make it through those hoops more easily than people from other countries. And of course they always trash us at cricket so they're always happy to come over."
Gambhir Watts is the President of the group, Bharatiya Vidya Bhavan Australia, which organises the annual Hindu festival of Holi in Sydney.
He says Indians have made a significant contribution to Australian society, including creating new traditions to celebrate Indian and Australian culture.
"The Holi festival we get 50 per cent are not Indians they are from all different backgrounds. We cherish that so much. In fact Mahatma Ghandi he defined Indian culture as one that has been influenced by those who have come to India from other countries. And those religions have in turn been influenced by Indian religion so it's all a mixture. So the same thing is happening here actually. The Indians of course they maintain their own tradition but they do adapt to Australian conditions very well."
Hindu Council of Australia chairman Professor Niehal Agar says he is overjoyed by the figures.
"It's wonderful news. As you know, most if not all Indians are very highly qualified, fluent in English and are professionals in almost all disciplines. So we'll certainly add to the overall economy, culture, art and wellbeing of Australian society."
But he says he still has concerns about the government implementing one of the recommendations in the Asian Century White Paper recognising Hindi as one of four Asian languages to be taught at schools.
"What is in the White Paper - if the state and federal government sincerely take (mean) this - then it will help both Australia and India in the long run because the language is the first contact point, whether it is to learn the history or culture or art or even to do business."
Professor Andrew Jakubowicz says the growth in skilled migrants from India alleviates concern around temporary migrants who come on 457 visas.
But he says there remains a key challenge around employment and skills recognition for migrants from non-European countries like India and China.
"One of the big challenges we face in terms of ensuring that we make good use of all this incredible talent that is coming in, is to make sure that they're getting a first leg up in the Australian system and get the local experience they need in order to find secure jobs. So there are issues around those questions, issues around underemployment, peoples' skills not being properly recognised or properly used. And this has been one of the continuing issues in the Australian migration system for many, many years. More people from India, more people from China means for those particular communities those questions will have to be addressed again."
Australia India Business Council President Deepak Raj Gupta welcomes the news as a sign of the growing economic relationship between the two countries.
But he says more work needs to be done by the federal government to ensure the qualifications of Indian migrants are recognised in Australia.
"That increase the frustration level. Sometimes you find that you sit in a cab and you ask: What's your background? I'm an engineer, a mechanical engineer or a scientist. But just to keep going do those courses and study they have to earn some income and by doing this they're doing odd jobs to support themselves and their families. And sometimes that's a drain of knowledge."
