Australia, India shake hands on new education pact

"This new mechanism means that if you're an Indian student who's studying - or about to study - in Australia, your hard-earned degree will be recognised when you return home," he said. 

"Or if you're a member of Australia's large Indian diaspora, you'll be able to feel more confident that your Indian qualifications will be recognised in Australia.

"It paves the way for commercial opportunities for Australian education providers to offer innovative and more accessible education to Indian students."

The chancellor and vice-chancellor of Deakin University are travelling alongside the prime minister, having announced an initial $4 million for 100 students to study cyber security and business analytics at a new campus in India each year.

Universities Australia chief executive Catriona Jackson said it was important that education is front and centre, with more than 1.5 million Indian students graduating with an Australian university degree since 2005.

"The answers to the toughest challenges lie in research and education, and Australia and India do this very well," she said.

"Australia's universities are also providing a world-class education for increasing numbers of Indian students. We can build on this, for the benefit of both nations."

The University of Melbourne is also working towards a dual science degree with three Indian universities. 

Mr Albanese said the presence of Australian universities having a presence in India provides a foundation for tertiary institutions in both nations to build stronger partnerships.

"Of course, we always welcome students to come and study in Australia, and that will continue to be an important focus for us," he said. 

"But not everyone has the means or the ability to pack up their lives and study in another country. 

"So the presence of Australian universities in India opens up new ways for Indian students to obtain an Australian education by bringing Australia a little bit closer."