A senior Indian Government minister says he is satisfied that Indian students studying in Australia are safe, and he does not believe Australia is a racist country.

India's External Affairs Minister SM Krishna is visiting Australia - the first visit by a senior Indian minister since the row over the treatment of Indian students blew up in May.

He is seeking reassurance from Australian leaders about the safety of Indian students studying in the country.

On Thursday Mr Krishna met NSW Premier Nathan Rees about violence and difficulties faced by Indian students.

He says he is happy with what he has heard from the Premier.

"Indians by and large are by and large are most welcome in Australia," he said.

There has been intense anger in India about the treatment of the country's students who study in Australia.

Bashings, several private college closures and allegations of students being ripped off have taken their toll.

And Indian students have been vocal in protesting against alleged exploitation.

Dr Yadu Singh, a representative for Indian students, says Indian students in Australia should be protected from exploitation.

"It's about making sure that the quality of education given to those students has improved," he said.

"It's about giving them freedom from exploitation."

Brian Hayes QC, a member of the Australian India Business Council, says the issue is damaging Australia's reputation overseas.

"The student issue is having a damaging effect on the image of Australia as perceived by the Indians," he said.

"We need to correct that."

Diplomatically upbeat

But Mr Krishna remains diplomatically upbeat.

Mr Krishna says he does not believe that Australia is a racist nation.

He spoke exclusively to ABC news after his meeting with Mr Rees.

Mr Krishna says he is satisfied with the reassurance he received today and will return to India with the Premier's message.

"Indian students are going to be safe in Australia," he said.

On Thursday the New South Wales Government moved to deregister Aerospace Aviation from teaching overseas trainee pilots because of a critical breach of standards.

Several students complained that they had paid thousands of dollars in tuition fees to the Bankstown Airport based Aerospace Aviation, but were left without qualifications.

The flying school says it will appeal the decision.

Meanwhile, 500 mainly Indian students from the failed Stirling private education college also remain in limbo.

On Friday Mr Krishna will meet Prime Minister Kevin Rudd and Foreign Affairs Minister Stephen Smith.