On his three-day trip to India, Smith was also scheduled to discuss trade issues and, in the light of terrorist threats, security arrangements for the Commonwealth Games to be held in India in October, diplomatic officials said.
Assaults on Indian students in Australia since May 2008 have put bilateral ties under strain.
Soon after reaching Delhi Tuesday, Smith told reporters that his country had "zero tolerance" for assaults on Indians or against anyone else who went to Australia.
"There have been some racial or racist overtones to a small number of those assaults and we condemn them absolutely," Smith said, adding that the Australian government had taken several steps to ensure visitors were safe.
The Australian Institute of Criminology, a private entity, was producing a report on the attacks to help the government deal with the issue better, Smith told a group of students in Delhi Wednesday.
"These studies will also give us a deeper understanding if we (the government) are doing all we can to address the issue," Smith was quoted as saying by IANS news agency.
Close to half a million Indians live in Australia including 120,000 students.
"Their safety, security and well-being are a cause of serious concern for us and at the highest levels we have been sensitizing our Australian friends about this aspect," India's Ministry of External Affairs spokesman Vishnu Prakash said Tuesday.
Prakash said India appreciated the steps being taken by Australia.
"They are taking a slew of measures including even changing their laws, tightening their laws and so on, increasing the police presence in plain clothes and otherwise," he said, adding that India was keeping a close watch.
Smith's scheduled engagements included a meeting with Federal Commerce Minister Anand Sharma.
Trade between India and Australia stood at US$19.8 billion in 2008-2009 and had great potential for growth, Prakash said. The two sides were examining the possibilities of concluding a free-trade agreement, he added.
Smith, a hockey buff, watched a world cup hockey match between India and Australia Tuesday, which Australia won 5-2.
