INDIA has finally given up on Australia as a source of uranium for what is to be a massive nuclear power industry after being left in no doubt by Foreign Minister Stephen Smith that there is no chance of the Rudd Government changing its stand on the issue.

As he flew home from New Delhi last night after four days in India, Mr Smith told The Weekend Australian that in a meeting with Prime Minister Manmohan Singh, the architect of the crucial Indo-US nuclear deal that is seen as central to the country's future, the matter of getting uranium from Australia was not discussed.

Indian government sources said this was because "from what we've heard from your Foreign Minister, there is absolutely no room for manoeuvre on the issue. So how much longer can we go on banging our heads against a brick wall?

"We can go elsewhere and buy uranium. South Africa and Canada have their order books open. That won't be a problem ... It's Australia that will be the loser in what is going to be a very, very big and very rich market."

During his visit, Mr Smith doggedly defended the Rudd Government's refusal to sell uranium to India despite the fact that it supported the waiver granted to the country earlier this month by the 45-nation Nuclear Suppliers Group that allows it access to the global trade in nuclear supplies.

"Our policy position is longstanding and well-known," Mr Smith said. "If you are not a party to the NPT, we don't export uranium to you. To have us export uranium to you requires membership of the NPT and a separate safeguards agreement."

Asked whether, given what he had found during four days in India, he thought it was time to advise the Rudd Government to rethink the policy, Mr Smith said: "I think I've spent four or five days in India, and I've spent many more days of my life at any number of ALP conferences."

Mr Smith was at pains to point out that Mr Singh did not raise the issue of uranium sales.

"He understood and respected our position on uranium just as I said we respected and understood their position on (not signing) the NPT," Mr Smith said.

"I understand all the commentary about the uranium issue, but one commodity in one industry does not a relationship make or break. The starting point of the Government of India is very warm, thanks to the position we took at the NSG.

"A second point made to me is that it is not as if (the ban on uranium sales) presents or creates an immediate practical problem for India. There are plenty of other alternative sources of uranium, and Indian officials would make the point that what was more important to India was the NSG and IAEA (International Atomic Energy Agency) decisions rather than from whom to source uranium.

"The ALP's deliberation and consideration of uranium policy has a long and vexed history. But a long time ago we came to a party public-policy decision about the export of uranium and the NPT and I think that of any country there is a deeper understanding in India than elsewhere of a party-political position, especially a longstanding one."