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Australian Citizenship can be acquired in three ways - by descent, by birth or by conferral.
See: Citizenship by Descent (see below)
See: Citizenship by Birth
Australian Citizenship by Descent
A child born overseas can be registered as an Australian citizen by descent if at least one of the biological parents was an Australian citizen at the time of the child's birth.
A parent can apply for registration of Australian citizenship by descent on behalf of the child before the child reaches 18 years of age. Applicants over 18 may apply in their own right.
See: How to lodge an application
Once you have received your child's certificate of Australian Citizenship you may wish to apply for an Australian passport on their behalf. For more information on how to apply for an Australian passport in India see:
Once a child has been registered as an Australian citizen, the child must not enter Australia on any travel document other than his/her own Australian passport.
Once the child has been issued an Australian passport you will need to obtain an Indian exit permit from the Foreigners Regional Registration Office (FRRO). Please refer to the following link for FRRO’s contact details: