The Washington Post and the ABC have reported Indian spies were kicked out of Australia after trying to steal sensitive information about defence projects as well as airport security.
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.
However, Mr Burgess did not at the time reveal which country was behind the operation.
"They successfully cultivated and recruited an Australian government security clearance holder who had access to secretive details of defence technology," he said during the 2021 speech.
"They asked a public servant to provide information on security protocols at a major airport."
Treasurer Jim Chalmers said Australia still had close ties with India.
"We have got a good relationship with India and with other countries in the region, it's an important economic relationship," he 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."
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.
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