"The government is examining consequences of the new policy in consultation with all stakeholders. This is also a matter we will be looking at in the context of Comprehensive Economic Cooperation Agreement (CECA) negotiations," said Gopal Baglay, official spokesperson of the Ministry of External Affairs.
The 457 visa scheme allowed Australian industries to employ foreign workers for a period of upto four-years in skilled jobs where there is a shortage of local workers.
Announcing the decision to revoke the popular visa policy, Australian Prime Minister Malcolm Turnbull said that the step was taken to "put Australians first" by giving them priority for jobs.
"Our reforms will have a simple focus: Australian jobs and Australian values," he said.
Mr Turnbull's decision comes days after his state visit to India. During the visit, Prime Minister Narendra Modi and Mr Turnbull undertook a ride aboard the Delhi Metro and visited the famous Akshardham Temple in the national capital. Australia and India also signed six pacts, including counter-terrorism an economic cooperation.
Majority of the beneficiaries under the 457 scheme are from India, which accounts for nearly a quarter of the visa holders. It is followed by UK and China, at 19.5 per cent and 5.8 per cent respectively.
(with inputs from Agencies)