The abolition of the 457 visas for skilled migrants not only risks affecting trade relations between India and Australia, it could also affect the number of Indian students studying at Australian universities.

A quarter of all 457 visa holders in Australia are Indian, which is the highest of any nation, reported the ABC.

As of March 2016 there were also 51,809 full fee-paying Indian student enrolments across schools, English Language Intensive Courses for Overseas Students (ELICOS), Vocational Education and Training (VET) and higher education.

Abolition of the 457 visas for skilled migrants could also affect the number of Indian students studying at Australian universities (stock image)

As of March 2016 there were 32,336 full fee-paying Indian students enrolled at a university in Australia. Migration agent Anisha Gupta said abolition of the 47 visa could affect students seeking degrees in the 200 professions the government is removing from the list

Statistics from the High Commission of India in Australia show 32,336 of those students were enrolled at a university in Australia.

Migration agent Anisha Gupta told the ABC the move could hurt Australian university's efforts to attract Indian students, especially those seeking degrees in the 200 professions the government is removing from the list of those eligible for skilled worker visas.

Ms Gupta said the students may go to other countries that have a more favourable immigration policy for them.

In a report from the Times of India, External Affairs Ministry spokesperson Gopal Baglay said the government was 'examining the consequences of the new policy in consultation with all stakeholders'.

'This is also a matter we will be looking at in the context of Comprehensive Economic Cooperation Agreement (CECA) negotiations,' Mr Baglay said.

A quarter of all 457 skilled migrant visa holders in Australia are Indian, which is the highest of any nation. Indian nationals on the 457 visas are mostly hired as cooks, software developers and programmers

While the largest number of 457 visa holders are from India, 19.5 per cent are from the UK and 5.8 per cent are from China.

Ms Gupta told the ABC she was taking a lot of calls from people who had the 457 visa and people who were applying for it, questioning how the changes were going to affect them.

Indian nationals on the 457 visas are mostly hired as cooks, software developers and programmers and government figures show nearly 10 per cent of 457 visas granted last year were for those roles.

The move could also damage Prime Minister Malcolm Turnbull's attempts to re-start stalled free trade talks with India.