The relatives of Indian student Nitin Garg, who was stabbed to death in Melbourne earlier this year, have thanked Victorian police for their work in the murder investigation.

A 15-year-old boy has appeared in a Victorian Children's Court charged with the murder Mr Garg as he walked to work through a park at West Footscray in early January.

The teenager was arrested about 9.00am AEST after a lengthy police investigation and has been remanded in custody.

His parents wept in the front row of the court during the short hearing.

Accountancy graduate Mr Garg, 21, struggled on to the doorstep of his workplace after the stabbing, but died later in hospital.

His death came amid controversy about allegedly racist attacks on Indians in Victoria and outrage in the Indian media.

Police have refused to speculate on a motive for the attack, but do not believe it was racially motivated or gang related.

Today Mr Garg's family in India expressed gratitude to Victoria Police for the work they have done pursuing the case.

Family spokesman Raj Kumar transported Mr Garg's body from Delhi to Punjab and arranged his funeral.

"We are satisfied with the Australian police and the Australian Government for the initiative they have taken," he said.

"We appreciate that. We are satisfied with their efforts. We are totally satisfied."

In a sad twist, the family is again in mourning over the death of Mr Garg's grandfather. But that has not dampened their relief over today's breakthrough.

"We are really thankful to the police of Australia," Raj Kumar said.

"Very good job. Really very good job. We are satisfied from our heart."

At a Victoria Police press conference this afternoon, Detective Inspector Bernie Edwards acknowledged the intense public interest in the murder in Australia and India.

Detective Inspector Edwards says police were under pressure and put a considerable amount of resources into the investigation.

"We are extremely pleased for Nitin Garg's family and the community here in Australia and all the Indian students," Detective Inspector Edwards said.

Message to the community

Mr Garg's murder sparked outrage in India and came amid a number of attacks on Indian students and taxi drivers in Melbourne.

Police are clearly hoping today's arrest will send a message to the Indian community and help instil some security.

"Victoria Police at all levels are engaging with the Indian community and other communities to assure them that Australia is a great place to live and it is usually a safe place to live," Detective Inspector Edwards said.

He says the investigation is not over yet.

"We have interviewed a number of other people in relation to the matter and inquiries are pending," he said.

"We intend to speak to other people in relation to it."

Tim Singh Lawrence is acting mayor at Darebin Council in Melbourne's north, home to a large population of Punjabi Indians, Indian students and Indian taxi drivers.

Mr Lawrence says the arrest will be reassuring to the Indian community.

"I was very relieved that the investigation that's been going on so long has led to some fruitful developments," he said.

"I think it will be very reassuring for the wider Indian community in Victoria and Australia to know that the police maintained their investigation until they got a result."

He has also urged caution in relation to the reaction to the arrest.

"I think that at this point there's been quite a bit of emotion generated around this case," he said.

"Now that we're proceeding to a legal process, I'd urge everyone, regardless of the country of birth of the alleged offender ... to be calm."