Australia's fragile relations with India have taken another serious blow with the knife slaying of a 21-year-old Punjabi in Melbourne.
The death follows a harrowing year of attacks and beatings of Indian students in Australia, triggering diplomatic protests, media outrage and street protests that saw Prime Minister Kevin Rudd burned in effigy.
The death of Nitin Garg on Saturday night now threatens to unravel Canberra's efforts to limit the damage caused to its relations with a rising regional superpower and to protect India's A$2 billion ($2.5 billion) contribution to Australia's international education industry.
The Tourism Forecasting Committee is already predicting Indian student arrivals will plummet by 21 per cent this year - reversing growth of 35 per cent last year - because of the violence. Unless the shortfall is made up by enrolments from other countries the industry could lose as much as A$78 million.
New Delhi is considering new measures, including a possible travel advisory warning against visiting or studying in Australia.
External Affairs Minister S.M. Krishna said the "heinous" and "uncivilised brutal attack" on Garg would affect relations between India and Australia.
Garg, a recent graduate in accountancy, was knifed as he walked through Cruickshank Park in West Footscray on his way to a part-time job in a restaurant. He staggered about 300m to the restaurant and was raced under police escort to Royal Melbourne Hospital but died soon after.
Deputy Prime Minister Julia Gillard condemned the killing, but said the police should be allowed to carry out their investigation. "This is a nation that welcomes international students. This is a welcoming and accepting country."
Senior Sergeant David Snare said there was no evidence the attack was racially motivated and any such claim was presumptuous and could interfere with the inquiry.
But the killing has renewed anger and fear in the Indian community. In November, despite political assurances and a police crackdown, another Indian student was repeatedly stabbed in Footscray after two youths demanded money. The man survived.
ABC radio also reported that Garg had previously been beaten by a group of men at the Newport railway station. "They were just drunk and they wanted to find anyone to beat," a housemate, Parminder Singh, said. "If they find someone alone they just beat them because they know nothing is going to happen after that.
"Police will not do anything. They will just take them to jail ... give them food and all facilities, so they're not scared of anything."
Federation of Indian Students of Australia spokesman Gautam Gupta said the Indian community was losing confidence in both governments and police.
He urged cricketing greats Ricky Ponting and Shane Warne to speak up against the violence and defend Indian students in Australia.
"Shane Warne is an icon in India," Gupta said. "He has millions of fans."
Garg's killing will place further pressure on Canberra, which last year promised tough action and launched a diplomatic offensive that saw Rudd, Gillard, Foreign Minister Stephen Smith and Victorian Premier John Brumby fly to India.
Knifing threatens ties with India
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