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Australian and Indian officials are working with Australian educational institutions and training organizations on opening up the country's training system to Indian students.
Tens of thousands of Indians would be trained under the plan to work in both countries, with up to 30,000 Australia-trained Indians being recruited to work in Australia.
India prompted the initiative after realising that it needs about a million skilled workers to help develop its own mining industry. Australia is also experiencing a lack or workers as its economy heats up and demand for resources increases.
According to Peter Linford, Australia's senior trade official in India, the skills training program will offer enormous opportunities for the education sector and mining industry.
Linford told the Australian Financial Review that the scheme could become a model for other to follow in industries in other countries.
Indians would be trained to Australian standards and employed on the same conditions as Australians under existing immigration schemes.