The Washington Post and the ABC have reported that Indian spies were kicked out of Australia after trying to steal sensitive information about defence projects as well as airport security.
"We have got a good relationship with India and with other countries in the region, it's an important economic relationship," Treasurer Jim Chalmers told ABC TV on Wednesday.
"It's become closer ... in recent years as a consequence of efforts on both sides and that's a good thing."
Treasurer Jim Chalmers said he was not aware of efforts to express concern to India. (Darren England/AAP PHOTOS)
Opposition Leader Peter Dutton, who was the home affairs minister at the time, would not comment on the intelligence reports but noted it was clear "we do face a very significant threat from foreign interference".
"It can come from many sources," he told reporters in South Australia.
India remained an important part of the Quad dialogue, which also includes Australia, Japan and the United States, he said.
"They are an increasingly important partner in the region because they share the same democratic values that we do here in Australia," he said.
"These are all important partners for us to work very closely with, and if there are problems in the relationship, they can be dealt with appropriately."
Foreign Minister Penny Wong said she did not comment on intelligence matters.
"But as a matter of general principles, Australia remains consistent to our interests and to our values in all of our engagements," she said.
The nest of spies was disrupted in 2020 by ASIO, with director-general Mike Burgess revealing in 2021 it had tried to target relationships with politicians, a foreign embassy and a state police service.
The nest successfully recruited "an Australian government security clearance holder who had access to secretive details of defence technology", Mr Burgess said.
It also asked a public servant for information on security protocols at a major airport, he said.
However, the spy chief did not at the time reveal which country was behind the operation.
Indian Prime Minister Narendra Modi visited Australia last in May 2023, holding several large events in Sydney with the Indian diaspora.
Dr Chalmers said he was not aware of efforts by the federal government to express concern to Indian counterparts about the nest of spies due to the coalition being in charge at the time of the incident.
Canada in 2023 publicly raised concerns about links between the Indian government and the shooting death of a member of the Canadian Sikh community who supported a separate state in India.
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