"I want to have a great concert for people to enjoy, and also to spread the message of togetherness and peace; build a bridge for people who are trying to break it," Rahman said.
The 44-year-old composer, who will perform at Parramatta Park in Sydney west on Saturday as part of the festival, said he never considered cancelling his trip in light of the recent furore over the attacks on Indian students.
"I felt the urge even more to do that (perform) because of all the stuff (that has been happening). I thought it was very important to do that," he told the ABC.
Rahman asked the media of both India and Australia to be more responsible in bridging the rift between the two nations rather than breaking them apart over the issue.
"First of all we need more responsible media. Media is a great tool, but grossly misused and can provoke people. Just one comment can kill a thousand people - that has happened in the past. You have to be extremely careful and strict about what (you write)," he said.
The 'Slumdog Millionaire' musician also rejected widely reported accusations that the killing of one Indian student and attacks on others were racist.
"I think the media should be responsible and not attribute them to racist killings," Rahman said, adding that young Indians should avoid walking at night in areas frequented by drug addicts and alcoholics.
"Because that's the main reason for the killing. It doesn't matter what race they are, they just want to kill because they're not in their own senses."
Acting NSW Premier Carmel Tebbutt said she was hopeful the concert would promote peaceful relations between the two countries.
"It's an opportunity... to promote our city and to send a very clear message that we're a multicultural, diverse city, we're a multicultural diverse country, and we're very proud of that," Tebbutt said.
On a query if they were expecting any disturbances, police said they were prepared for the worst but hopeful the event would be peaceful.
"We'll have sufficient police and security there to deal with any contingency," NSW Assistant Police Commissioner Denis Clifford said.
"If anyone wants to go there to try and disrupt the activities or the enjoyment of others, they'll be quickly dealt with."
Meanwhile, Department of Foreign Affairs and Trade have also organised Indian journalists' visit Down Under who will also attend the concert.
More than 100,000 people are expected to attend the concert, where Rahman and a troupe of 40 musicians and dancers will perform music he has written over the past 18 years, including his international hit 'Jai Ho!'.