Without nominating skills that would be targeted, the opposition party's Immigration spokesman Scott Morrison referred to the "massive explosion" in overseas student numbers, AAP reported.
"The area where it (population) has blown out largely has been in the student programme... (with) all sorts of rorts and abuses," he was quoted as telling 'Network Ten'.
"The government hasn't actually said ... what is going to be done with this massive pipeline of students who are now in the system."
The issue would be looked at by the Productivity Commission, under the opposition's population strategy, he said.
Over one lakh Indian students are among a large number of foreigners studying in Australia. Though a series of attacks on the Indians in the last one year had led to a slump in their numbers, the situation had improved in recent weeks, with encouraging student enrolment figures.
The federal opposition's demand for a crackdown on overseas student numbers is expected to affect Indian students seeking residency in Australia.